It is stand accounting procedures, or GAAP, to make an adjusting entry to remove the current year’s principle from the long-term liabilities. This entry reduces the long-term liabilities and increases the current liabilities. You are the bookkeeper for Biker’s Business. Biker’s Business has a bank loan that requires a current ratio of 1.5 times. The owner has asked that you do not make the adjusting entry to take the current portion from the long-term liabilities. You know if you make the adjusting entry Biker’s Business’ loan will need to be repaid immediately (or the loan called). What should you do?

  1. 👍
  2. 👎
  3. 👁

Respond to this Question

First Name

Your Response

Similar Questions

  1. Language arts pls check my answer

    Where is the part of speech located in a dictionary entry?(1 point) a. in the numbered definitions that follow the entry word b. before the entry word c. after the pronunciation d. in parentheses after the entry word i think the

  2. bookkeeping

    Worksheet (Use the information from the trial balance in Exam Figure 2. Write the worksheet information on the form in Exam Figure 1.) You’ll need the following adjustment information: a. P. Woodsley counted the supplies on May

  3. business communication

    please help me to revise this paragraph I’m fed up with the mistakes that our current accounting firm makes. I run a small construction company, and I don’t have time to double-check every bookkeeping entry and call the

  4. accounting II

    Joshua owns an apartment complex with 7 tenants. Each unit rents for $1,500 per month. At the end of April, three tenants were past due on paying their rent. Which of the following represents the correct adjusting journal entry

  1. Accounting 1

    Match each of the following characteristics that describe financial accounting, managerial accounting, both financial and managerial accounting, or neither financial nor managerial accounting. A. Financial accounting B. Managerial

  2. Career Prep

    once you've graduated from college how should you update your resume remove grades of indivisional courses**** remove inferences remove special skills remove volunteer experiences am I right?

  3. RE: adjusting entry

    Can someone help me prepare an adjusting entry for the following> Prepaid insurance account had 4,000 balance on December 31, 2007. An analysis of insurance policies shows that 1,200 of unexpired insurance benefits remain at

  4. Accounting

    Accounting 1 Help! 1. An accountant records a transaction when cash is paid or received under which basis of accounting? cash deferred accrual liability 2. When unearned revenue is initially recorded as a revenue, the adjusting

  1. accounting

    Ok, the case is this. Six months ago, you closed your business. Now, a person has expressed an interest in acquiring the business. The potential buyer requests a current balance sheet, but you provide her with the one that was

  2. Accounting

    Omission of a prepaid expense adjusting entry will have what effect?

  3. xacc 280

    At October 31, Nathan Company made an accrued expense adjusting entry of $1,400 for salaries. Prepare the reversing entry on November 1, and indicate the balances in Salaries Payable and Salaries Expense after posting the

  4. accounting

    In accounting for an immaterial amount of overapplied overhead, which of the following is part of the adjusting entry? a. A debit to the Work in Process Inventory account b. A debit to the Overhead account A debit to the Cost of

You can view more similar questions or ask a new question.