ACCSLOO CONFIDENTIAL LILI Encik Pa presented the balance sheet to the bank's loan office on January 2 , 2013 , confident that the company had met the terms of the loan . The loan officer was not impressed . She said . " We need financial statements audited by a CPA " A CPA was hired and immediately realized that the balance sheet had been prepared from a trial balance and not from an adjusted trial balance , The adjustment data at the balance sheet date consisted of the allowing 1 . Earned but unbilled janitorial services were RM3 000 2 Janitorial supplies on hand were RM3 500 3 . Prepaid insurance was a 3 - year policy dated January 1 2012 4 . December expenses incurred but unpaid at December 31 RM300 5 . Interest on the bank loan was not recorded 6 . The amounts for plant assets were net of accumulated depreciation of RM 4 000 for cleaning equipment and RM5 0DO for delivery trucks as of January 1 , 2012 . Depreciation for 2012 was RM2 000 for cleaning equipment and RMS , ooo for delivery trucks Required Prepare a correct Balance Sheet , show all related workings ( 25 marks ) Were the terms of the bank loan met ? Explain why marks )