Why might be these journal entries considered fraudulent or suspicious? Explain the reasons for each quarter in detail.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 23CE
icon
Related questions
Question

Why might be these journal entries considered fraudulent or suspicious? Explain the reasons for each quarter in detail.

FIRST|QUARTER
Entry
debit
credit
Plant, Property, Equipment
97,639
Sales-Dining
(97,639)
SECOND QUARTER
Entry
debit
credit
Inventory
143,941
Sales-Dining
(143,941)
THIRD QUARTER
Entry
debit
credit
Plant, Property, Equipment
121,043
Account Payable
(121,043)
FOURTH QUARTER
Entry
debit
credit
Plant, Property, Equipment
130,111
SG&A
(130,111)
Transcribed Image Text:FIRST|QUARTER Entry debit credit Plant, Property, Equipment 97,639 Sales-Dining (97,639) SECOND QUARTER Entry debit credit Inventory 143,941 Sales-Dining (143,941) THIRD QUARTER Entry debit credit Plant, Property, Equipment 121,043 Account Payable (121,043) FOURTH QUARTER Entry debit credit Plant, Property, Equipment 130,111 SG&A (130,111)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Frauds in Accounting information system (AIS)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage