Fantasy Graphics is a graphics arts design consulting firm. Terri Bierman, its treasurer and vice president of
Question:
In the Current Assets section of the balance sheet, Terri reported a $100,000 receivable from Kent Miles, the president of Fantasy Graphics, as a trade account receivable. Kent borrowed the money from Fantasy Graphics in November 2006 for a down payment on a new home. He has orally assured Terri that he will pay off the account receivable within the next year. Terri reported the $100,000 in the same manner on the preceding year's balance sheet.
Evaluate whether it is acceptable for Terri Bierman to prepare the January 31, 2008, balance sheet in the manner indicated above.
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...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Question Posted: