Sarah Roberts is the assistant chief accountant at the HK Company, a manufacturer of computer chips and cell phones. The company presently has total sales of $20 million Sarah is hurriedly trying to prepare a general ledger trial balance so that the quarterly financial statements can be prepared and released to management and the regulatory agencies. The total credits on the trial balance exceed the debits by $1,000. In order to meet the 5 PM deadline, Sarah decides to force the debits and credits into balance by adding the amount of the difference to the Equipment account. She chose Equipment because it is one of the larger account balances; percentage-wise, it will be the least misstated. Sarah "plugs the difference! She believes that the difference will not affect anyone's decisions. She wishes that she had another few days to find the error but realizes that the financial statements are already late. REQUIRED: 1. What are the ethical issues? 2. Who are the stakeholders? (at least 3) 3. What are Sarah's alternatives? (at least 3) 4. What would you do? Explain Ary Jrebuy occurs when an organizational buyer simply reorders additional units of products with no changes from an approved supplier. (one word) Doggie Dining, Inc. In August, 2020, Doggie Dining, Inc. was established in Lafayette, Louisiana, to sell gourmet dog cuisine via the internet to individual and commercial customers across the United States. Luke Ward and Pachi Lee are the major stockholders in this corporation Part I: The company completed the following transactions during August 2020. August 1 3 12 Stockholders (Luke and Pachi) invested $60,000 cash in the business, Purchased a computer system for use in the business for $12,000; paid $5,000 down and signed a 1 year 12% note for the balance. Hired Ima Nurd to design, set up, and operate the company's website. Purchased $21,000 of gourmet dog cuisine from a local manufacturing company paid 1/3 in cash and the balance on account. Paid $6,000 for a one-year insurance policy effective September 1, 2020. Received $9,000 cash for services to be provided from August 15 through October 31, 2020. Purchased supplies for $6,200 on account. Paid $2,800 to advertise the opening of their business. Sold gourmet dog cuisine to customers on account for $26.000; the cuisine cost $11,000. Paid $4,700 to creditors on account. Collected $12,600 from customers billed on August 18. Sold gourmet dog cuisine to customers for $4,400 cash; the cuisine cost $1,300 Paid $800 for utilities used during August. Declared and paid a $900 dividend. 30 REQUIRED: Journalize the August transactions in the general journal
