Determine the Impact on the Statement of Financial Position Accounts

question 232

Essay

Determine the impact on the statement of financial position accounts if the following information is not used to adjust the accounts of Fortress Company for the month of January, 2014. Round answers to the nearest dollar.
1. The company rents extra office space to B & J, CPAs. B & J pays the $24,000 rent annually on January 1.
2. The company has an outstanding loan to its President in the amount of $120,000. The loan accrues interest at the annual rate of 6%. Principal and interest are due January 1, 2017.
3. The company completed work on a project during January that was not yet billed to the client. The client will be charged $2,500.

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Definitions:

Symmetric

Describes a shape or distribution that is mirrored evenly around its central point.

Central Location

A statistical term referring to the center or typical value of a distribution, often measured by the mean, median, or mode.

Ordinal

Relating to an order or sequence; typically referring to data that can be ranked but the intervals between values are not uniform.

Negatively Skewed

Describes a distribution of data where the tail on the left side of the distribution is longer or fatter, indicating that the bulk of the values are concentrated on the right.