You Have Just Accepted Your First Job Out of College

Essay

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.
Which of the following accounts do you think might need to be adjusted before an accurate set of financial statements could be prepared? Richard Enterprises
Statement of Accounts
December 31
$\begin{array}{|l|l|l|}\hline \text { Cash } & \$ 2,050 & \\\hline \text { Billings Due from Others } & 15,070 & \\\hline \text { Office Supplies } & 7,470 & \\\hline \text { Trucks } & 36,370 & \\\hline \text { Equipment } & 8,090 & \\\hline \text { Amounts Owed to Others } & & \$ 2,850 \\\hline \text { Investment in Business } & & 33,500 \\\hline \text { Service Revenues } & & 73,650 \\\hline \text { Wages Expense } & 30,050 & \\\hline \text { Rent Expense } & 7,330 \\\hline \text { Insurance Expense } & 2,400 \\\hline \text { Utilities Expenses } & 700 \\\hline \text { Miscell aneous Expenses } & 470 & \\\hline \text { Totals } & \$ 110,000 & \$ 110,000 \\\hline\end{array}$