The adjusted trial balance of Gibson Company for the year ended December 31, 2024, is as follows:

Instructions
Prepare a multiple-step income statement, statement of owner’s equity, and classified balance sheet. The notes payable is due on January 10, 2025. The note receivable is due on June 30, 2025. The allowance for doubtful accounts applies to accounts receivable only.

Taking It Further

The loan manager at Loans R Us is reviewing the financial statements for Gibson. Gibson would like to borrow funds to purchase a delivery vehicle. What are some observations the loan manager might make about Gibson’s operating performance and management of its accounts receivable?

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Cash Accounts Receivable Notes Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Equipment Notes Payable Accounts Payable G. Gibson, Capital G. Gibson, Drawings Sales Interest Revenue Cost of Goods Sold Salaries Expense Rent Expense Bad Debt Expense Service Charge Expense Debit $ 6,400 2,700 6,300 10,000 7,500 1,000 8,000 1,400 700 60 40 $44,100 Credit $ 300 1,000 1,100 600 28,000 13,000 100 $44,100