I was so confused about this problem. Please help me solving this problem with specific work. Thank you so much!

Mr . G . Valley Jr . has come to see about an operating loan for his business . The assets andliabilities of Valley Business are as followASSETS5Accounts Receivable ( net )1.500Plant Assets( net of 10 000 Accumulated Dep )0.000Intangible Assets150.000Total assets$162 500OWNERS COUNTYValley Capital8162 500The income statement lists the followingRevenues$85 000Expense31000Net Income$ 54000Valley Business uses a hybrid accounting method that recognizes income when earned andexpenses when paid . Income in the amount of $2 500 has been accrued at the end of the aboveaccounting period and expenses in the amount of $4 ,100 have been incurred but not entered intobuntingthe accounting records because the amounts have not been paid . There is a $1 000 allowance foruncollectible accounts . The book value of fixed assets includes $5 000 for office equipment and85 000 stereo system Mr . Valley has in his apartment . The intangibles include $100 000 inresearch and development on a computerized learning program yet to be perfected or marketed ,$40 000 paid to a friend for a customer list ten years ago ( considered to have an indefinite life )and $10 000 for improvements to premises leased from Mr . Valley ST . on a month to monthtenancy . Mr . Valley ST . has said junior can stay and operate his business in the leased space foas long as he wants toRequiredAs Mr . Valley 's Banker and a T . C . C . graduate , what accounting issues would you raise , andwhat question would you ask and why ? Look up online the accounting treatment for research anddevelopment and the pur chase of client lists . Redo the balance sheet and income statementfollowing GAAP and adjusting amounts for errors in accounting principle