Evan OBrien, Inc , publishes a travel magazine In need of cash, the business applies for a loan with National Bank The bank requires borrowers to submit financial statements With little knowledge of accounting, Evan OBrien, the sole shareholder, does not know how to proceed Requirements 1 Explain h...

Req 1 The balance sheet is prepared by summarizing the assets liabilities and stockholders equity of ...

Evan OBrien, Inc., publishes a travel magazine. In need of cash, the business applies for a loan

Question:

Evan O’Brien, Inc., publishes a travel magazine. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit With little knowledge of accounting, Evan O’Brien, the sole shareholder, does not know how to proceed.
Requirements
1. Explain how to prepare the and the income statement.
2. Which organization is the privately funded body of accountants that defines pronouncements that guide how the will be prepared?
3. Indicate why a lender would require this information.
4. What type of organization is Evan O’Brien, Inc.?
5. If Evan wanted to attract outside investors, which form of business would best enable that option?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...