RESPOND TO THESE STUDENTS POSTS
AND BE CONSTRUCTIVE WITH ANSWER
You would need to record all purchases made by your company and also record all cash received from the sale of goods or services brought in by your company. This is important to be able to keep track of all transactions of money coming in or going out of your business so that you are able to stay in the black and stay within a possible spending or expense budget for your company.
An example of a transaction for my company would be:
May 27 Medical Equipment $2000.00
Accounts Payable $2000.00
In the medical facility we purchase a lot of equipment and we have to be able to keep track of all of it and what is purchased on credit and what is purchase with cash on hand.
If a co-worker comes to me to tell me that something was recorded twice then I am going to assume that a mistake was made to give them the benefit of the doubt. However, I am still going to research this and go back over the journal entries and to make sure that we are in balance or not, or if maybe other entries may also have been entered incorrectly by this same employee in the past. I would not accept the dinner since if it was an honest mistake then we can get it corrected and hopefully this will not happen again with the same employee, or if there is something fishy and the employee is trying to do something fraudulent then I wouldn’t take a bribe to let this squeak by without informing my immediate supervisor about what I have observed and to authorize any changes so that they are aware of the situation as well. There is no way that I am putting my job in danger just to fix the cash in the ledger to help a friend or a co-worker out. If you alter something and it is found later to be fraudulent then it will come back on you instead of the other co-worker because you were the one that looks to be altering figures incorrectly.
List of Transactions in the text:
Cash investments to the company by Owner. Cash paid out to Rent, Supplies, or Expenses. A company receiving cash for unearned services or earned services. Supplies were purchased on credit. Prepaid rent. Utilities are paid in cash.
Wild(2019)suggested an example of when the Owner invests his own money into his company. This type of transaction involves the Cash account and the Owner, Capital account. The Cash account will be debited the cash amount invested, while the Owner, Capital account will be credited the same amount. Another example would be when a company paid cash for rent. This involves 2 entries, first of which debits the Rent Expense account and credits the Cash account on the 2nd entry.
I think that it is fitting that this process is called ‘accounting.’ All transactions need to be recorded accurately so that they all can be accounted for. When transactions are not accurate, the statements will show inaccurate data. Therefore, errors must be corrected to prevent potential issues, leading up to legal issues.
If this is a co-worker, then I would suggest that they get this resolved through proper channels by reporting this error to our manager. I am the type of co-worker that will help the team, even put in overtime. But, if the request is not within the company guideline, I will not get involved. As for the dinner offer, I would kindly decline.
I would investigate before doing anything that would jeopardize my career. I think the Cash account is increasing therefore will need to be credited for correction.