Decision-Making Across the Organization CT4.4 Whitegloves Janitorial Service was started 2 years ago by Jenna Olson. Because businent has been exceptionally good, Jenns decided on July 1, 2020, to expand operations by acquiriag en additional truck and hiring two more assistants. To finance the expansion, Jenna obtained on Jaly 1. -2020, a 225,000 , 10\% bank loan, payable f10,000 on July 1,2021, and the balance on July 1,2022 . The terms of the loan require the borrower to have f10,000 more current assets than current liabilities at December 31,2020 . If these terms are not met, the bank loan will be refinanced at 15% interest. At December 31. 2020, the accountant for Whitegloves Janitorial Service prepared the following statemeat of financial position. Jenne presented the statement of financial position to the bank's loan officer on January 2, 2021., confident that the company had met the verns of the loan. The loan officer was no impressed. She said, "We need financiai statements aadited by a CA." A CA was hired and immediately ealized that the statement of financial position had been prepared from a trial baiance and not from an a jjusted trial balance. The adjusthent data at the statement of finaneial position date consisted of the foll wing. 1. Unbilled janitorial services performed were 3,700. 2. Janitorial supplies on hand were {2,500, 3. Prepaid insurance was a 3-year policy dated Jannuary 1, 2020. 4. December expenses incurred but unpaid at December 31,500. 5. Interest on the bank lo was not recorded. 6. The amounts for property, plant, and equipment presented in the statement of financia' posttion were reported net of accumulated depreciation (cost less accumulated depreciation) These amounts were f4,000 for cleaning equipment and f5,000 for delivery trueks as of January 1. 2020. Depreciation for 2020, still unrecorded, was 2,000 for cleaning equipment and 25.000 for delivery trucks. Instructions With the class divided into groups, answer the following: a. Prepare a correct statement of financial position. b. Were the lerms of the bank loan met? Explain