Response to the following problem:
The net income of Solas Photography Company decreased sharply during 2014. Lisa Almond, owner of the company, anticipates the need for a bank loan in 2015. Late in 2014, Almond instructed Brad Lail, the accountant and a personal friend of yours, to record a $10,000 sale of portraits to the Almond family, even though the photos will not be shot until January 2015.
Almond also told Lail not to make the following December 31, 2014, adjusting entries:
Salaries owed to employees $10,000
Prepaid insurance that has expired $1,000