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to record or not to record explain why each of the following hypothetical events wou 691739

To Record or Not to Record

Explain why each of the following hypothetical events would not be recorded in a journal entry.

1. A famous and much beloved movie star is secretly filmed by an investigative news team using your company’s product when she in fact has an endorsement contract with your company’s major competitor.

2. Two of your firm’s top vice presidents have a bitter argument and will probably never speak to each other again.

3. Your company’s chief research chemist is killed in a plane crash.

4. Because of unfavorable economic news, consumer confidence is shaken, and the stock market falls by 10%.

5. You, a small business owner, buy a sofa for your home. You pay with a check Dr. awn on your personal, not your business, checking account.

6. Disney decides to build the next Walt Disney World near a large piece of property you own.

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