Taking inventory for personal use

Assignment Help Auditing
Reference no: EM13114088

Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughter's wedding, Symington took inventory that cost $10,000.

How do you feel Symington should have recorded these transactions? Why? What are the ethical implications of Symington's actions?

Reference no: EM13114088

Questions Cloud

Illustrate which process is best for this contract : Owner Alexander Zapota hopes the contract will be extended and the volume increased next year. Zapota has developed costs for three alternatives. Illustrate w hich process is best for this contract?
Adjusting journal entries for a company : Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. On February 2, the corporation purchased goods from Martin Company for $75,800 subject to cash discount terms of 2/10, n/30.
Probability that sample mean salary of will not exceed : Random sample of 40 male math professors are selected. What is the probability that the sample mean salary of male math professors will not exceed that of the female math professors?
Why would the muscle and nerve cells be affected : there are several inherited conditions that are linked to abnormal mitochondrial enzymes. Because of these defective enzymes, the mitochondria of people with these disorders are not able to generate ATP as efficiently as those of normal individual..
Taking inventory for personal use : Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual drawing of $80,000.
Describe the concept and be specific in the code : develop an ethical code that will guide the decisions of a large multinational oil company (e.g., Chevron) towards environmental protection. Be sure to describe the concept and be specific in the code.
Explain what competitive pressures be prepared to deal with : Explain What competitive pressures must Shearwater Adventures be prepared to deal with? What do we learn about the nature and strength of the competitive pressures Shearwater faces from doing a five-force analysis of competition
What mass of titanium displaces water : The density of titanium metal is 4.51g/cm3 at 25C. what mass of titanium displaces 125.0ml of water at 25c.
Calculating mexican peso cost of dollar loan : Suppose on that on January 1st a Mexican firm borrows $20 million from Citibank (USA) for one year at 8.00% interest per annum.

Reviews

Write a Review

Auditing Questions & Answers

  Forecast accounts receivable

Accounts receivable are $45,000 and are directly proportional to total sales. The sales forecast for next year is $125,000, which represents a 5% growth over the current year. The forecast accounts receivable would be:

  Accountable action

What types of unethical behavior should we expect to see from our clients? Also, how do we interpret "honest" mistakes from intentional fraud?

  Calculate balances for accounts receivable in ledgers

Presented below is information related to Kienholz Company for its first month of operations. Identify the balances that appear in the accounts receivable subsidiary ledger and the accounts receivable balance that appears in the general ledger at ..

  Limitations of internal control system

You are an accountant at a local CPA firm that is auditing the accounting records of XYZ Company. You have been asked to educate the accounting department about the limitations of the internal control system in preparation for an upcoming audit.

  Internal control-not-for-profit organization

A not-for-profit organization periodically conducts focus groups of employees, service beneficiaries and governance board members to reevaluate its mission, vision, and values to determine the accuracy of the strategic statements to refine them wh..

  Identify a controversy relating to auditors'' independence

You are required to identify a current controversy relating to Auditors' Independence.

  Nature and events of contingency

You are auditing Green Corporation for the calendar year 2010. Among other items related to the audit; Green Corporation was being sued for personal injury resulting from the malfunction of one of their products. Discuss the nature of these events..

  Risk and liability factors in audit

What are the risks and liability factors in an audit? What are the implications to the auditor? What are the implications to the organization? How can the auditor mitigate these risks and liability factors?

  Journal entries of selzer equipment company

Selzer Equipment Company sold 610 Rollomatics during 2012 at $6,580 each. During 2012, Selzer spent $25,950 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.

  Bank investment risks

What is you opinion on the Chase Bank trade? They lost 2 Billion on a risky investment; it caused their stock price to loose 10%. It supposedly was a "Hedge" that went wrong.

  Role of independent cpa-auditing

Examine the CPA profession and licensing requirements (Use New Jersey's please). Explain how a licensed CPA (as an outside auditor) could be of value to your company. Critique current auditing standards.

  Effective rate of two financing options

Find the effective rate of both. Which is lowest? If Marine Bank eliminates its compenstating balance requirement, would the answer change? What would the new effective rate be?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd