Asked by Nguy?n Tr?ng on May 20, 2024
Verified
You have just accepted your first job out of college, which requires you to evaluate loan requests at Eastwood National Bank. The first loan request you receive is from Richard Enterprises. Richard Tracy, the CEO, is requesting $105,000 and brings you the following trial balance (or statement of accounts) for the first year of operations ended December 31.What three accounts do you think should be relabeled for greater clarity? 
Trial Balance
A trial balance is a bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.
Loan Requests
Loan requests involve applying for a specified amount of money from a lender, which the borrower agrees to repay with interest over a predetermined period.
Financial Statements
Formal records of the financial activities and position of a business, individual, or other entity, presented in a structured manner.
- Evaluate an income statement to identify if it reflects a net gain or a net loss.
- Illustrate and compile a categorized financial statement.
Verified Answer
Billings Due from Others-Accounts Receivable
Amounts Owed to Others-Accounts Payable
Investment in Business-Common Stock
Learning Objectives
- Evaluate an income statement to identify if it reflects a net gain or a net loss.
- Illustrate and compile a categorized financial statement.
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