Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

b) Bob Delgado, the financial officer of Velor Inc. is planning on expanding the business and has applied for a $2,000,000 bank loan. Joe Smith,

image text in transcribed

b) Bob Delgado, the financial officer of Velor Inc. is planning on expanding the business and has applied for a $2,000,000 bank loan. Joe Smith, a Chartered Accountant and Certified Fraud Examiner was contracted by the bank to review the financial statements of Velor Inc. Joe discovered that the balances shown below were included in Sales. He also noted the excerpt from the amortization schedule of the mortgage payable which is shown below. Use this information to prepare a corrected classified balance sheet (including all sections). Please note the accounts have been duplicated from above for convenience and are exactly the same Balance 1,500 lor I Balance Sheet March 31, 2014 Accumulated Depreciation, Automobiles Accumulated Depreciation, Building Advertising Payable Automobiles Bonds Payable (due January, 2019) Building Cash Depreciation Expense, Automobiles Depreciation Expense, Building Dividends Interest Expense Investment in Bonds Land Mortgage Payable Notes Receivable (due May, 2014) Operating Expenses Rent Expense Rent Receivable Retained Earnings Salaries Expense Sales Share Capital Supplies 14,800X 15,500x 60,400x 49,900x 1,500 32,000 18,400 2.500 68,600 75,500 2014)..15.400 68,100 6.200 16,300 81,500 11,100 163,500 131,500 97,100 ded in S 12,100 Advance Air Ticket Sales Uneamed Accommodation Reservations Uneamed Bus Tour Revenue Mortgage Amortization Schedule Year 2013 2014 015 2016 Principal Balance at March 31 99,400 75,500 51,600 27,700

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Management Audit And Conservation

Authors: U. P. Kumar Chaturvedula

1st Edition

6202015985, 978-6202015981

More Books

Students also viewed these Accounting questions