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eBook Monthly Transactions, Adjustments, and Financial Statements Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: January 2: A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000. January 3: A two-year, 12%, $30,000 promissory note was signed at Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019. January 4: New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value. January 5: A 24-month property insurance policy is purchased for $6,000 in cash. January 6: An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January. January 7: Cleaning supplies are purchased on account for $950. The bill is payable within 30 days. January 15: Wages of $4,230 for the first half of the month are paid in cash. January 16: A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February. January 31: Cash receipts from rentals of rooms for the month amount to $8,300. January 31: Cash receipts from operation of the restaurant for the month amount to $6,600. January 31: Each stockholder is paid $200 in cash dividends. Assume a 360-day year. When required, do not round your intermediate calculations and round your final answers to the nearest whole dollar. Required: 3.  Identify and analyze the necessary adjustments for each of the following: a.  Depreciation of the house. Use straight line method of depreciation.   How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.

eBook Monthly Transactions, Adjustments, and Financial Statements Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: January 2: A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000. January 3: A two-year, 12%, $30,000 promissory note was signed at Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019. January 4: New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value. January 5: A 24-month property insurance policy is purchased for $6,000 in cash. January 6: An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January. January 7: Cleaning supplies are purchased on account for $950. The bill is payable within 30 days. January 15: Wages of $4,230 for the first half of the month are paid in cash. January 16: A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February. January 31: Cash receipts from rentals of rooms for the month amount to $8,300. January 31: Cash receipts from operation of the restaurant for the month amount to $6,600. January 31: Each stockholder is paid $200 in cash dividends. Assume a 360-day year. When required, do not round your intermediate calculations and round your final answers to the nearest whole dollar. Required: 3.  Identify and analyze the necessary adjustments for each of the following: a.  Depreciation of the house. Use straight line method of depreciation.   How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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    Monthly Transactions, Adjustments, and Financial Statements

    Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January:

    January 2: A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000.
    January 3: A two-year, 12%, $30,000 promissory note was signed at Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019.
    January 4: New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value.
    January 5: A 24-month property insurance policy is purchased for $6,000 in cash.
    January 6: An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January.
    January 7: Cleaning supplies are purchased on account for $950. The bill is payable within 30 days.
    January 15: Wages of $4,230 for the first half of the month are paid in cash.
    January 16: A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February.
    January 31: Cash receipts from rentals of rooms for the month amount to $8,300.
    January 31: Cash receipts from operation of the restaurant for the month amount to $6,600.
    January 31: Each stockholder is paid $200 in cash dividends.

    Assume a 360-day year. When required, do not round your intermediate calculations and round your final answers to the nearest whole dollar.

    Required:

    3.  Identify and analyze the necessary adjustments for each of the following:

    a.  Depreciation of the house. Use straight line method of depreciation.

     

    How does this entry affect the accounting equation?
    If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.

7:38 M CM Week 2 - Assignment еВook Monthly Transactions, Adjustments, and Financial Statements Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: January 2: A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000. January 3: A two-year, 12%, $30,000 promissory note was signed at Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019. January 4: New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value. January 5: A 24-month property insurance policy is purchased for $6,000 in cash. January 6: An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January. January 7: Cleaning supplies are purchased on account for $950. The bill is payable within 30 days. January 15: Wages of $4,230 for the first half of the month are paid in cash. > January 16: A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February. January 31: Cash receipts from rentals of rooms for the month amount to $8,300. January 31: Cash receipts from operation of the restaurant for the month amount to $6,600. January 31: Each stockholder is paid $200 in cash dividends. Assume a 360-day year. When required, do not round your intermediate calculations and round your final answers to the nearest whole dollar. Required: 3. Identify and analyze the necessary adjustments for each of the following: a. Depreciation of the house. Use straight line method of depreciation. Activity Operating Accounts Accumulated Depreciation-House Increase, Depreciation Expense-House Increase > Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Accumulated Depreciation-House -1,200 X No Entry -1,200 No Entry Depreciation Expense-House b. Depreciation of the furniture. Use straight line method oaccounting depreciation. > Activity Operating Accounts Accumulated Depreciation-Furniture Increase, Depreciation Expense-Furniture Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses = Accumulated Depreciation-Furniture 1,500 X No Entry 1,500 X No Entry Depreciation Expense-Furniture c. Interest on the promissory note. Activity Operating Accounts Interest Payable Increase, Interest Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses > Νο Entry Interest Payable 300 -300 No Entry Interest Expense 300 d. Recognition of the expired portion of the insurance. Activity Operating Accounts Prepaid Insurance Decrease, Insurance Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement > Stockholders' Assets Liabilities Equity Revenues Expenses Prepaid Insurance -250 No Entry -250 No Entry Insurance Expense 250 e. Recognition of the earned portion of the guest's deposit. Activity Operating Accounts Rent Received in Advance Decrease, Revenue from Rental of Rooms Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Rent Received in Advance -490 490 Revenue from Rental of Rooms 490 No Entry f. Wages earned during the second half of January amount to $5,120 and will be paid on February 3. Activity Operating Accounts Wages Payable Increase, Wages Expense Increase Statement(s) Balance Sheet and Income Statement > How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Wages Payable 5,120 -5,120 Nο Entry Wages Expense 5,120 g. Cleaning supplies on hand on January 31 amount to $230. Activity Operating Accounts Cleaning Supplies Decrease, Cleaning Supplies Expense Increase > Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Expenses Cleaning Supplies 230 X No Entry -230 X No Entry Cleaning Supplies Expense 23 h. A gas and electric bill that is received from the city amounts to $740 and is payable by February 5. Operating Activity > Accounts Utilities Payable Increase, Utilities Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Utilities Payable -740 No Entry Utilities Expense 740 740 > i. Income taxes are to be accrued at a rate of 30% of income before taxes. Activity Operating Accounts Income Tax Payable Increase, Income Tax Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Income Tax Payable 486 -486 X No Entry Income Tax Expense 48 4a. Prepare an income statement for the month ended January 31, 2017. Moonlight Bay Inn Income Statement For the Month Ended January 31, 2017 Revenues: From rental of rooms 8,790 From restaurant 6,600 Total revenues 15,390 Expenses: Advertising 2$ 450 > Wages 9,350 Depreciation-house -1,200 Depreciation-furniture 1,500 Interest 300 Insurance 250 Cleaning supplies 720 Utilities 740 Income taxes 468 X Total expenses 13,042 Net income 2,348 <> 4b. Prepare a statement of retained earnings for the month ended January 31, 2017. If an amount is zero, enter "0". Moonlight Bay Inn Statement of Retained Earnings For the Month Ended January 31, 2017 Beginning balance, January 2, 2017 Net income 2,348 Cash dividends 600 Ending balance, January 31, 2017 2$ 1,748 4c. Prepare a balance sheet at January 31, 2017. > Moonlight Bay Inn Balance Sheet January 31, 2017 Assets Current assets: Cash $4 29,600 Cleaning supplies 230 Prepaid insurance 5,750 Total current assets 35,580 Property, plant, and equipment: Furniture 15,000 > Accumulated depreciation 125 14,875 House 2$ 35,000 Accumulated depreciation 100 34,900 Land 15,000 Total property, plant, and equipment 64,775 Total assets 100,355 Liabilities Current liabilities: Accounts payable 950 Interest payable 300 > Wages payable 5,120 Utilities payable 740 Rent received in advance 490 Income tax payable 1,007 Total current liabilities 8,607 Long-term debt: Notes payable 30,000 Total liabilities 38,607 Stockholders' Equity. Capital stock $ 60,000 Retained earnings 1,748 > Total stockholders' equity 61,748 Total liabilities and stockholders' equity 100,355 5. You are the loan officer at Second State Bank. You have made a loan to Moonlight inn. Upon verifying the financial statements, Which of the statements given below would make you comfortable with the loan you made? a. The inn has shown a profit, but the balance sheet does not show a strong position. The banker should not be comfortable with the loan made. b. The inn has shown a profit and the balace sheet shows a strong position. The banker should be comfortable with the loan made. c. The inn has shown a loss but the balace sheet shows a strong position. The banker should be comfortable with the loan made. d. The inn has shown a loss and the balace sheet does not show a strong position. The banks should not be comfortable with the loan made. 4 Check My Works used Previous Next
Transcribed Image Text:7:38 M CM Week 2 - Assignment еВook Monthly Transactions, Adjustments, and Financial Statements Moonlight Bay Inn is incorporated on January 2, 2017, by its three owners, each of whom contributes $20,000 in cash in exchange for shares of stock in the business. In addition to the sale of stock, the following transactions are entered into during the month of January: January 2: A Victorian inn is purchased for $50,000 in cash. An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house. The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000. January 3: A two-year, 12%, $30,000 promissory note was signed at Second State Bank. Interest and principal will be repaid on the maturity date of January 3, 2019. January 4: New furniture for the inn is purchased at a cost of $15,000 in cash. The furniture has an estimated useful life of ten years and no salvage value. January 5: A 24-month property insurance policy is purchased for $6,000 in cash. January 6: An advertisement for the inn is placed in the local newspaper. Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January. January 7: Cleaning supplies are purchased on account for $950. The bill is payable within 30 days. January 15: Wages of $4,230 for the first half of the month are paid in cash. > January 16: A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks. The guest plans to stay at the inn during the last week of January and the first week of February. January 31: Cash receipts from rentals of rooms for the month amount to $8,300. January 31: Cash receipts from operation of the restaurant for the month amount to $6,600. January 31: Each stockholder is paid $200 in cash dividends. Assume a 360-day year. When required, do not round your intermediate calculations and round your final answers to the nearest whole dollar. Required: 3. Identify and analyze the necessary adjustments for each of the following: a. Depreciation of the house. Use straight line method of depreciation. Activity Operating Accounts Accumulated Depreciation-House Increase, Depreciation Expense-House Increase > Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses Accumulated Depreciation-House -1,200 X No Entry -1,200 No Entry Depreciation Expense-House b. Depreciation of the furniture. Use straight line method oaccounting depreciation. > Activity Operating Accounts Accumulated Depreciation-Furniture Increase, Depreciation Expense-Furniture Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses = Accumulated Depreciation-Furniture 1,500 X No Entry 1,500 X No Entry Depreciation Expense-Furniture c. Interest on the promissory note. Activity Operating Accounts Interest Payable Increase, Interest Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses > Νο Entry Interest Payable 300 -300 No Entry Interest Expense 300 d. Recognition of the expired portion of the insurance. Activity Operating Accounts Prepaid Insurance Decrease, Insurance Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement > Stockholders' Assets Liabilities Equity Revenues Expenses Prepaid Insurance -250 No Entry -250 No Entry Insurance Expense 250 e. Recognition of the earned portion of the guest's deposit. Activity Operating Accounts Rent Received in Advance Decrease, Revenue from Rental of Rooms Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Rent Received in Advance -490 490 Revenue from Rental of Rooms 490 No Entry f. Wages earned during the second half of January amount to $5,120 and will be paid on February 3. Activity Operating Accounts Wages Payable Increase, Wages Expense Increase Statement(s) Balance Sheet and Income Statement > How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Wages Payable 5,120 -5,120 Nο Entry Wages Expense 5,120 g. Cleaning supplies on hand on January 31 amount to $230. Activity Operating Accounts Cleaning Supplies Decrease, Cleaning Supplies Expense Increase > Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities + Equity Revenues Expenses Cleaning Supplies 230 X No Entry -230 X No Entry Cleaning Supplies Expense 23 h. A gas and electric bill that is received from the city amounts to $740 and is payable by February 5. Operating Activity > Accounts Utilities Payable Increase, Utilities Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Utilities Payable -740 No Entry Utilities Expense 740 740 > i. Income taxes are to be accrued at a rate of 30% of income before taxes. Activity Operating Accounts Income Tax Payable Increase, Income Tax Expense Increase Statement(s) Balance Sheet and Income Statement How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses No Entry Income Tax Payable 486 -486 X No Entry Income Tax Expense 48 4a. Prepare an income statement for the month ended January 31, 2017. Moonlight Bay Inn Income Statement For the Month Ended January 31, 2017 Revenues: From rental of rooms 8,790 From restaurant 6,600 Total revenues 15,390 Expenses: Advertising 2$ 450 > Wages 9,350 Depreciation-house -1,200 Depreciation-furniture 1,500 Interest 300 Insurance 250 Cleaning supplies 720 Utilities 740 Income taxes 468 X Total expenses 13,042 Net income 2,348 <> 4b. Prepare a statement of retained earnings for the month ended January 31, 2017. If an amount is zero, enter "0". Moonlight Bay Inn Statement of Retained Earnings For the Month Ended January 31, 2017 Beginning balance, January 2, 2017 Net income 2,348 Cash dividends 600 Ending balance, January 31, 2017 2$ 1,748 4c. Prepare a balance sheet at January 31, 2017. > Moonlight Bay Inn Balance Sheet January 31, 2017 Assets Current assets: Cash $4 29,600 Cleaning supplies 230 Prepaid insurance 5,750 Total current assets 35,580 Property, plant, and equipment: Furniture 15,000 > Accumulated depreciation 125 14,875 House 2$ 35,000 Accumulated depreciation 100 34,900 Land 15,000 Total property, plant, and equipment 64,775 Total assets 100,355 Liabilities Current liabilities: Accounts payable 950 Interest payable 300 > Wages payable 5,120 Utilities payable 740 Rent received in advance 490 Income tax payable 1,007 Total current liabilities 8,607 Long-term debt: Notes payable 30,000 Total liabilities 38,607 Stockholders' Equity. Capital stock $ 60,000 Retained earnings 1,748 > Total stockholders' equity 61,748 Total liabilities and stockholders' equity 100,355 5. You are the loan officer at Second State Bank. You have made a loan to Moonlight inn. Upon verifying the financial statements, Which of the statements given below would make you comfortable with the loan you made? a. The inn has shown a profit, but the balance sheet does not show a strong position. The banker should not be comfortable with the loan made. b. The inn has shown a profit and the balace sheet shows a strong position. The banker should be comfortable with the loan made. c. The inn has shown a loss but the balace sheet shows a strong position. The banker should be comfortable with the loan made. d. The inn has shown a loss and the balace sheet does not show a strong position. The banks should not be comfortable with the loan made. 4 Check My Works used Previous Next
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