Determine the Impact on the Balance Sheet Accounts If the Following

question 125

Essay

Determine the impact on the balance sheet accounts if the following information is not used to adjust the accounts of Mood Food Company for the month of January, 2018. Round answers to the nearest dollar.
1. The company rents extra office space to Beulah, CPAs. Beulah pays the $6,000 rent annually on January 1.
2. The company has an outstanding loan to its President in the amount of $150,000. The loan accrues interest at the annual rate of 6%. Principal and interest are due January 1, 2020.
3. The company completed work on a project during January that was not yet billed to the client. The client will be charged $3,100.

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Definitions:

Net Working Capital

It represents the disparity between an organization's short-term holdings and debts, signifying the state of its financial wellbeing and efficiency in operations.

Dealer

An individual or firm in the financial markets that buys and sells securities for their own account, rather than on behalf of clients.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, usually charging a commission for their services.

Agent

An individual or entity authorized to act on behalf of another (the principal) in dealings with third parties.