Case 5.1 Cardillo Travel System, Inc.

Description: Smith is the Chairman of Cardillo Travel Agency, he just involved into a case that whether to sign the affidavit with United Airlines. Because he inspected that there is something wrong with the affidavit concerning Cardillo’s stockholders’ equity, so that he refused to sign affidavit. Just for this reason, he was kicked out from his position. Moreover, the other two of his executives Rognlien and Lawrence, just approved the $203,000 adjusting entry recorded link to Airlines-Cardillo transaction.