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Ethics In Actions Warren, 0., Jonick, C., & Schneider, J. (2018). Accounting (28th ed., p. 343). Boston: Cengage Learning, Inc,. Margie Johnson is a staff

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Ethics In Actions Warren, 0., Jonick, C., & Schneider, J. (2018). Accounting (28th ed., p. 343). Boston: Cengage Learning, Inc,. Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the company expects the accounting department to \"make this happen." Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated. Shortly after the end of the scal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she nds a significant amount of inventory shrinkage. The amount is so large that it will result in a signicant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get \"caught up" on shrinkage in the next period after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him. - - 1. 2. How would the nancial statements be impacted if Margie doest not make the adjusting entry

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