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DISCUSSION BOARD 2: Please read the Ethical Issue 3-1 in Chapter 3 on page 195. In your first post please address the following: 1 – Compute the overall effects of these transactions on the store’s reported income for 2014. 2 – Why is Steinbach taking this action? Is his action ethical? Give your reason, identifying the parties helped and the parties harmed by Steinbach’s action. 3 – As a personal friend, what advice would you give the accountant? In your second post comment on one of your classmates posts. For example: Do you think that your classmate should have included another factor? Why or why not? Maybe you agree with your classmate, but for another reason that he/she stated. If so, explain. ETHICAL ISSUE: The net income of Steinbach & Sons, a department store, decreased sharply during 2014. Mort Steinbach, manager of the store, anticipates the need for a bank loan in 2015. Late in 2014, Steinbach instructs the stores accountant to record a $2,000 sale of furniture to the Steinbach family, even though the goods will not be shipped from the manufacturer until January 2015. Steinbach also tells the accountant not to make the following December 31, 2014, adjusting entries: ______________________________________ Salaries owed to employees……………………$900 Prepaid insurance that has expired 400 _______________________________________ CLASSMATE DISCUSSION: Steinbach is taking this type of action because the company needs to have a good credit in order to be approved for the bank loan that it is seeking in the upcoming year. Steinbach & Sons will do whatever it takes to get this loan it seems by attempting to provide the bank with faulty information under false pretenses. The false information that will be provided to the bank will be the fact that Steinbach & Sons actually made more revenue than they are actually reporting, by not stating the salaries owed to employees in the amount of $900.00 and the prepaid…
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