Accounting Ethics President of LFC Inc Wrong Adjustment Entries Case Discussion Please find attached an Ethics case regarding financial accounting with all

Accounting Ethics President of LFC Inc Wrong Adjustment Entries Case Discussion Please find attached an Ethics case regarding financial accounting with all the instructions provided. Thank you. 1
ACCT 201 Ethics Assignment- Summer Semester 2020
Purpose and Requirements of the Case Study:
The purpose of the Case Study is to contribute towards the development of BBA student’s ethical and communication skills.
The case requires each student to write a report that identifies
ethical concerns,
options and dilemmas; and
provides an ethical decision.
Case Study
The President of LFC Inc, Jo Rogers, a friend of your family, recently hired you as a trainee executive assistant. Your duties
include assisting with strategy, budgeting, and year-end accounts. On 1st Dec 2020 at the end of the financial year, Jo calls
by your office. S/he greets you with a warm friendly smile and says s/he is pleased with your work so far and can see how
you can play an important part in its future expansion. You are very keen to do this and ask how you can help.
Jo explains that to take advantage of the possibly growing market the firm needs new equipment. This will increase
company income and provide security of employment for the firm’s 35 workers. In fact, it may open the possibility of
increasing their overtime and hence take-home pay. However, the firm will have to borrow $50,000 dollars and the bank
will want to see the firm earning at least 10% on its assets. LFC is currently earning 8%.
Jo knows this and asks you to make a couple of “small year-end adjustments”. The first, is to reduce depreciation expense
by increasing the estimated life of the building from 10 to 15 years. The second is to record December’s wage expense on
January 4th when the employees are actually paid. Jo concludes, stating with a smile “these adjustments do not involve cash.
They are just part of bookkeeping”. “Moreover, with luck we can include you in the executive bonus pool in 2021”. Later you
determine that if the President’s instructions are followed LFC will show a return of over 10% on its assets.
Instructions
Using the guidelines provided overleaf identify ethical concerns, analyze the situation, considering all stakeholders, identify
dilemmas, and explain what you would do. Will you obey or disobey the President?
Parameters
a.
Case study assigned Monday 13th July 2020
b.
Written report with cover page and statement of ethical compliance, to be submitted by 2 p.m. Sunday 23rd July 2020
c.
Report length 500 to 600 words. Typed size 12 font 1.5 line spacing.
d.
Four parts, describe situation, identify ethical concerns, analyze options outcomes and dilemmas, and ethical decision.
e.
Individual, not group work.
f.
Case worth 10 marks (Penalties applied daily for late submission).
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