Steve Holden, Controller for Glenda Company, Was Approached by Helena

question 39

Essay

Steve Holden, controller for Glenda Company, was approached by Helena Glenda, the CEO. Helena asked that Steve do something to increase net income from $94,000 to slightly over $100,000 to meet the requirements of a bank loan. Steve replaced a $9,000 debit to Payroll Tax Expense when recording the employer payroll taxes with a debit to Land, since the large balance in that account would not Required:
Was Helena's request, or Steve's action, ethical? Explain.