The following paragraphs describe fraudulent accounting committed by the company Waste Management . After reading the paragraphs, list the journal entries you think Waste Management would have used to do what is described here. You will have to make an educated guess as to what journal entries the company would use to cover up the fraud.

In addition to the "netting," top management made approximately $29 million (representing $0.04 per share in earnings) in unbudgeted top-level adjustments in the second quarter to achieve the targeted $0.43 per share in earnings. They reversed environmental and insurance reserves into income and manipulated the depreciation expenses of landfill equipment. Koenig and Hau, among other things, eliminated an arbitrary $1.5 million in depreciation expenses on the theory that the Company was using equipment less during the recession.