The manager of a business is suspected of fraud due to a suddenly lavish lifestyle that includes a new car and a vacation home. Inspect the journal entry below (all four images) for signs of fraud. Note all journal entries that seem unusual (made at odd times, accounts that don't go together, etc) and why each entry is unusual or suspect.

A B D E F Entry Date Split Date Debit Credit G Balance 82,803 2,513,749 2,532,378 2,532,378 2,513,749 54,162 63,904 281,147 296,776 296,776 83,498 12/31/2008 2/16/2009 Cost of Goods Sold 15,629 15,629 12/31/2008 2/28/2009 Loans to Employees 40,000 40,000 123,498 123,498 (66,824) 12/31/2008 2/16/2009 Depreciation Expense 6,534 6,534 (73,358) (73,358) 1 Type 2 Checking 3 4 5 Total Checking 6 Inventory 7 Adjusting Entry 8 Total Inventory 9 Equipment 10 11 Adjusting Entry 12 Total Equipment 13 Accumulated Depreciation 14 15 Adjusting Entry 16 Total Accumulated Depreciation 17 Loan to Employees 18 19 Adjusting Entry 20 Total Loan to Employees 21 Other Assets 22 Total Other Assets 23 Payroll Liabilities Payable 24 25 Total Payroll 26 Liabilities Payable 27 28 Sales Tax Payable 29 30 31 Total Sales Tax Payable 32 Long-Term Debt 40,000 40,000 12/31/2008 2/28/2009 Equipment 40,000 40,000 40,000 1,253 1,253 (49,169) (15,000) (51,789) 34,169 36,789 34,169 36,789 (51,789) (16,593) 16,593 (18,410) 18,410 16,593 18,410 (18,410) (44,441) B D F G 1,862 1,862 (42,579) (42,579) (1,000) (1,000) (270,674) (270,674) 2,513,479 2,513,479 (2,513,479) (2,513,479) 2,090,538 6,000 12/31/2008 02/16/2009 Auto Lease 12/31/2008 02/16/2009 Inventory 2,090,538 2,096,538 2,080,909 2,080,909 15,629 15,629 2,096,538 33 34 Total Long-Term Debt 35 Capital Stock 36 Total Capital Stock 37 Retained Earnings 38 Total Retained Earnings 39 Sales 40 41 Total Sales 42 Cost of Goods Sold 43 44 Adjusting Entry 45 Adjusting Entry 46 Total Cost of Goods Sold 47 Advertising and Promotion 48 49 Adjusting Entry 50 Total Advertising and Promotion 51 52 Auto Lease 53 54 Adjusting Entry 55 Total Auto Lease 56 Delivery 57 58 Total Delivery 59 Depreciation Expense 60 Adjusting Entry 61 Total Depreciation Expense 62 Insurance Expense 63 64 Adjusting Entry 65 Total Insurance Expense 12/31/2008 02/28/2009 Travel and Entertainment 7,512 20,000 27,512 7,512 27,512 27,512 6,000 6,000 12/31/2008 02/16/2009 Cost of Goods Sold 6,000 6,000 6,000 12,669 12,669 12,669 12,669 12/31/2008 02/16/2009 Accumulated Depreciation 6,534 6,534 6,534 6,534 12/31/2008 02/28/2009 Outside Labor 30,149 8,000 38,149 30,149 38,149 38,149 B D E F G - 3,115 3,115 3,115 3,115 4,350 4,350 4,350 4,350 A 66 Interest Expense 67 68 Total Interest Expense 69 Misc. Expense 70 71 Total Misc. Expense 72 Office Supplies 73 74 Total Office Supplies 75 76 Officers Compensation 77 78 Total Officers Compensation 79 Outside Labor 80 81 Adjusting Entry 82 Total Outside Labor 83 Postage 84 85 Total Postage 86 Rent Expense 87 88 Total Rent Expense 89 Repairs and Maintenance 50,000 50,000 50,000 50,000 8,698 12/31/2008 02/28/2009 Insurance 8,000 8,000 8,698 698 698 8,698 1,310 1,310 1,310 1,310 24,000 24,000 24,000 24,000 90 1,769 1,769 1,769 1,769 91 Total Repairs and Maintenance 92 Salaries & Wages 93 94 Total Salaries & Wages 95 Supplies 161,315 161,315 161,315 161,315 96 2,021 2,021 2,021 2,021 97 Total Supplies 98 Taxes & Licenses B D F G 54,543 54,543 54,543 54,543 3,667 3,667 3,667 3,667 26,051 A 99 100 Total Taxes & Licenses 101 102 Telephone Expense 103 104 Total Telephone Expense 105 Travel and Entertainment 106 107 Adjusting Entry 108 Total Travel and Entertainment 109 Utilities 110 111 Total Utilities 112 Interest Income 113 114 Total Interest Income 115 12/31/2008 02/28/2009 Advertising and Promotion 20,000 20,000 26,051 6,051 6,051 26,051 7,246 7,246 7,246 7,246 5,197,219 5,197,219 116 A B D E F Entry Date Split Date Debit Credit G Balance 82,803 2,513,749 2,532,378 2,532,378 2,513,749 54,162 63,904 281,147 296,776 296,776 83,498 12/31/2008 2/16/2009 Cost of Goods Sold 15,629 15,629 12/31/2008 2/28/2009 Loans to Employees 40,000 40,000 123,498 123,498 (66,824) 12/31/2008 2/16/2009 Depreciation Expense 6,534 6,534 (73,358) (73,358) 1 Type 2 Checking 3 4 5 Total Checking 6 Inventory 7 Adjusting Entry 8 Total Inventory 9 Equipment 10 11 Adjusting Entry 12 Total Equipment 13 Accumulated Depreciation 14 15 Adjusting Entry 16 Total Accumulated Depreciation 17 Loan to Employees 18 19 Adjusting Entry 20 Total Loan to Employees 21 Other Assets 22 Total Other Assets 23 Payroll Liabilities Payable 24 25 Total Payroll 26 Liabilities Payable 27 28 Sales Tax Payable 29 30 31 Total Sales Tax Payable 32 Long-Term Debt 40,000 40,000 12/31/2008 2/28/2009 Equipment 40,000 40,000 40,000 1,253 1,253 (49,169) (15,000) (51,789) 34,169 36,789 34,169 36,789 (51,789) (16,593) 16,593 (18,410) 18,410 16,593 18,410 (18,410) (44,441) B D F G 1,862 1,862 (42,579) (42,579) (1,000) (1,000) (270,674) (270,674) 2,513,479 2,513,479 (2,513,479) (2,513,479) 2,090,538 6,000 12/31/2008 02/16/2009 Auto Lease 12/31/2008 02/16/2009 Inventory 2,090,538 2,096,538 2,080,909 2,080,909 15,629 15,629 2,096,538 33 34 Total Long-Term Debt 35 Capital Stock 36 Total Capital Stock 37 Retained Earnings 38 Total Retained Earnings 39 Sales 40 41 Total Sales 42 Cost of Goods Sold 43 44 Adjusting Entry 45 Adjusting Entry 46 Total Cost of Goods Sold 47 Advertising and Promotion 48 49 Adjusting Entry 50 Total Advertising and Promotion 51 52 Auto Lease 53 54 Adjusting Entry 55 Total Auto Lease 56 Delivery 57 58 Total Delivery 59 Depreciation Expense 60 Adjusting Entry 61 Total Depreciation Expense 62 Insurance Expense 63 64 Adjusting Entry 65 Total Insurance Expense 12/31/2008 02/28/2009 Travel and Entertainment 7,512 20,000 27,512 7,512 27,512 27,512 6,000 6,000 12/31/2008 02/16/2009 Cost of Goods Sold 6,000 6,000 6,000 12,669 12,669 12,669 12,669 12/31/2008 02/16/2009 Accumulated Depreciation 6,534 6,534 6,534 6,534 12/31/2008 02/28/2009 Outside Labor 30,149 8,000 38,149 30,149 38,149 38,149 B D E F G - 3,115 3,115 3,115 3,115 4,350 4,350 4,350 4,350 A 66 Interest Expense 67 68 Total Interest Expense 69 Misc. Expense 70 71 Total Misc. Expense 72 Office Supplies 73 74 Total Office Supplies 75 76 Officers Compensation 77 78 Total Officers Compensation 79 Outside Labor 80 81 Adjusting Entry 82 Total Outside Labor 83 Postage 84 85 Total Postage 86 Rent Expense 87 88 Total Rent Expense 89 Repairs and Maintenance 50,000 50,000 50,000 50,000 8,698 12/31/2008 02/28/2009 Insurance 8,000 8,000 8,698 698 698 8,698 1,310 1,310 1,310 1,310 24,000 24,000 24,000 24,000 90 1,769 1,769 1,769 1,769 91 Total Repairs and Maintenance 92 Salaries & Wages 93 94 Total Salaries & Wages 95 Supplies 161,315 161,315 161,315 161,315 96 2,021 2,021 2,021 2,021 97 Total Supplies 98 Taxes & Licenses B D F G 54,543 54,543 54,543 54,543 3,667 3,667 3,667 3,667 26,051 A 99 100 Total Taxes & Licenses 101 102 Telephone Expense 103 104 Total Telephone Expense 105 Travel and Entertainment 106 107 Adjusting Entry 108 Total Travel and Entertainment 109 Utilities 110 111 Total Utilities 112 Interest Income 113 114 Total Interest Income 115 12/31/2008 02/28/2009 Advertising and Promotion 20,000 20,000 26,051 6,051 6,051 26,051 7,246 7,246 7,246 7,246 5,197,219 5,197,219 116