The timing of adjusting entries can alter the analysis of a company. As the full-charge bookkeeper, it is your job to ensure that the adjusting entries are entered on a timely basis. You have noticed that the adjusting entry to transfer the current years portion from mortgage payable long term to mortgage payable current has not been entered. You mention it to your controller and are told not to record this adjusting entry. The company is applying for a loan from the bank and the controller found out that the loan officer looks only at the current assets and current liabilities. You are further told that if anyone questions the lack of the adjusting entry to apologize for the error and record it immediately. Is this ethical for you and the companys controller? Provide justification for your decision.

Additionally, please incorporate some of the following questions: Beyond the ethical questions, might this raise additional problems ? Why or why not? From a balance sheet perspective, what might be "off" as a result of not recording this entry? What financial ratios (please cite) may be incorrect as a result of not recording the entry?