Write a memorandum to your instructor that explains and illustrates the steps in the recording process

for each of the March $15$ transactions. Use the format illustrated in the text under the heading "The

Recording Process Illustrated."

Ethics Cases

CT$3\mathrm{.}9$ Vanessa Jones is the assistant chief accountant at IBT Company, a manufacturer of computer

chips and cell phones. The company presently has total sales of $$20$ million. It is the end of the first quar$-$

ter and Vanessa is hurriedly trying to prepare a trial balance so that quarterly financial statements can be

prepared and released to management and the regulatory agencies. The total credits on the trial balance

exceed the debits by $$1,000.$

In order to meet the $4$ P$.$M$.$ deadline, Vanessa decides to force the debits and credits into balance

by adding the amount of the difference to the Equipment account. She chose Equipment because it is

one of the larger account balances; percentage$-$wise, it will be the least misstated. Vanessa plugs the

difference! She believes that the difference is quite small and will not affect anyone's decisions.

She wishes that she had another few days to find the error but realizes that the financial statements

are already late.

Instructions

a$.$ Who are the stakeholders in this situation?

b$.$ What ethical issues are involved?

c$.$ What are Vanessa's alternatives?