You are the bookkeeper, for Laura Morales, owner, of a prosperous Morales Electrical Company. As the bookkeeper, you completed all the journal entries for the month, and also prepared the trial balance. Mr. Morales tells you that the trial balance must be done by 5 p.m. today, March 31. However, the trial balance is not in balance which means the debit totals does not equal the credit totals. The credit balance exceeded the debit balance by $5,000. He tried to correct the problem, but could not make the deadline. The bookkeeper decided to add $5,000 debit to the equipment account to make the balances of the trial balance equal.

Do you feel that the bookkeeper acted ethically in his decision making?

Who is affected by the bookkeepers decision?

How would you have handled the situation if you were the bookkeeper?