Assume that you recently accepted a position with Five Star National Bank & Trust as an assistant loan officer. As one of your first duties, you have been assigned the responsibility of evaluating a loan request for $$300,000$ from West Gate Auto Co$.,$ a small corporation. In support of the loan application, Joan Whalen, owner, submitted a $$Statement of Accounts$($trial balance$)$ for the first year of operations ended October $31,20$Y$3.$

Explain to Joan Whalen why a set of financial statements $($income statement, statement of stockholders$$ equity, and balance sheet$)$ would be useful to you in evaluating the loan request.

In discussing the $$Statement of Accounts$$ with Joan Whalen, you discovered that the accounts had not been adjusted at October $31.$ Analyze the $$Statement of Accounts$$ and indicate possible adjusting entries that might be necessary before an accurate set of financial statements could be prepared.$($Please name $2$ adjusting entries$).$

Assuming that an accurate set of financial statements will be submitted by Joan Whalen in a few days, what other considerations or information would you require before making a decision on the loan request?