Ellyn Kole is the assistant chief accountant at Doman Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first quarter. Ellyn is hurriedly trying to prepare a transaction analysis to assist her in preparing the financial statements. The total of the liabilities and owner's equity exceeds the total assets by $1,000. In order to meet the 4 pm deadline, Ellyn decides to force the transaction analysis into balance by adding the amount of the difference to the Equipment account. She chooses Equipment because it is one of the larger account balances; percentage-wise, it will be the least misstated. Ellyn "plugs" the difference! She believes that the difference will not affect anyone's decisions. She wishes that she had another few days to find the error but realizes that the final information is already late.

In your discussion posting address ALL questions but not limit to the following questions:

a. Who are the stakeholders in this situation?
b. What are the ethical issues involved in this case?
c. What are Ellyn's alternatives?

1. Ellyn being dishonest by adding $1000 to the equipment asset and mistating the numerical value. This could cause loss as the $1000 could be from a liability account

C. Alternatives:

1. Creating a suspense account for the difference of $1000

2. Postponing finalisation and escalating the issue to a senior accountant to find out where the difference is from

swatiupadhyay714 swatiupadhyay714 · Answer 2 · 2022-01-01T10:48:17+01:00

a. The name of the stakeholders mentioned in the context are:

Ellyn
The company
People using the financial statements

b. Misstatement or the manipulation of the data records is the ethical issue that has been involved in the case mentioned over the context.

c. The final alternative that has been in the hand of Ellyn is to create the suspense account of the misstated amount and also extend the finalization date of the data.

a. The stakeholders are termed as the person who is also a member of the company and are included in the roles, operations, and functions of the company.

In this context, Ellyn, the company, and the People using the financial statements are the owners of the company and also the stakeholders of the company. these have purchased or invested in part of the company and have their part of share in the firm.

b. The ethical issues in the firm are termed as the issues that arose because of not following the laid norms of the firm.

In this context, Ellyn has misstated the amount of $1000 and decided to adjust it in the equipment account as it carries a high amount. This is the ethical issue of manipulation of the data.

c. The alternative that Ellyn has is she needs to adjust the difference amount in the suspense account that is created in order to adjust the unknown amount or the mistaken amount.

In order to get the time to correct the mistake of the data, she also has options to extend the date of the finalization of the data.

To know more about the questions regarding the context, refer to the link below:

https://brainly.com/question/14120121