accounting class discussionaround 280 words thanks, instruction see attachment
This is a graded discussion: 8 points possible
due Mar 10
15 15
Module 5 Discussion
Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have
been assigned the responsibility of evaluating a loan request for $300,000 from West Gate Auto Co., a small corporation. In support of the loan
application, Joan Whalen, owner and sole stockholder, submitted a “Statement of Accounts” (trial balance) for the first year of operations ended
October 31, 2016.
West Gate Auto Co.
Statement of Accounts
October 31, 2016
Cash
5,000
Billings Due from Others
40,000
Supplies (chemicals, etc.)
7,500
Building
222,3000
Equipment
50,000
Amounts Owed to Others
31,000
Investment in Business
179,000
Service Revenue
251,000
Wages Expense
75,000
Utilities Expense
10,000
Rent Expense
8.000
Insurance Expense
6,000
Other Expenses
1,200
425,000
425,000
1. Explain to Joan Whalen why a set of financial statements (income statement, retained earnings statement, and balance sheet) would be useful
to you in evaluating the loan request.
2. In discussing the “Statement of Accounts” with Joan Whalen, you discovered that the accounts had not been adjusted at October 31. Analyze
the “Statement of Accounts” and indicate possible adjusting entries that might be necessary before an accurate set of financial statements
could be prepared.
Post to the module discussion board and then reply to at least two of your classmates posts.
Purchase answer to see full
attachment
