Homework Help: accounting

Posted by Sam on Thursday, May 7, 2009 at 10:45am.

Can someone tell me how to figure this out? I am so lost when it comes to accounting.

The net income of Simon and Hobbs, a department store, decreased sharply during 2000. Carol Simon, owner of the store, anticipates the need for a bank loan in 2001. Late in 2000, Simon instructs the store's accountant to record a $10,000 sale of furniture to the Simon family, even though the goods will not be shipped from the manufacturer until January 2001. Simon also tells the accountant not to make the following December 31, 2000 adjusting entries:

Salaries owed to employees: $900
Prepaid insurance that has expired: $400
Why is Simon taking this action? Is her action ethical? Give your reason, identifying the parties helped and the parties harmed by Simon's action.

No one has answered this question yet.

Answer this Question

Related Questions

accounting - Hi! I can't figure out this question...any help is greatly ...
ACCOUNTING - THE NET INCOME OF SIMON AND HOBBS, A DEPT.STORE,DECREASED SHARPLY ...
Accounting - Why is Simon taking this action? Is her action ethical? Give a ...
Accounting - Why is Simon taking this action? Is her action ethical? Give a ...
Financial accounting - I'm lost on how to do calculate revenues, expenses, ...
accounting, question - I need help how do you calculate a first year's net ...
accounting - Can someone help me figure this out, please? The company I am using...
accounting - Ayres Services acquired an asset for $80 million in 2011. The asset...
accounting..help plz urgent! - An accounting report that shows the changes in ...
adult education/accounting - Hello, I want the answer for 'pay as you go'...

For Further Reading

First Name:
School Subject:
Answer: