Patrick works for mcgill’s computer repair, owned and operated by frank mcgill. as a computer technician, patrick has grown accustomed to friends and family members asking for assistance with their personal computers. in an effort to increase his income, patrick started a personal computer repair business that he operates out of his home on a part-time basis, working evenings and weekends. because patrick is doing this "on the side" for friends and family, he does not want to charge as much as mcgill’s charges its customers. when frank mcgill assigned patrick the task of developing the budget for his department, patrick increased the amount budgeted for computer parts. when the budget was approved, patrick purchased as many parts as the budget allowed, even when they were not needed. he then took the extra parts home to use in his personal business in an effort to keep his costs down and profits up. so far, no one at mcgill’s has asked about the parts expense because patrick has not allowed the actual amount spent to exceed the budgeted amount.1. why would patrick’s actions be considered fraudulent? 2. what can a company do to protect against this kind of business risk?

What is the difference between a debtor and a creditor?

The unadjusted trial balance of the manufacturing equitable at december 31, 2018, the end of its fiscal year, included the following account balances. manufacturing’s 2018 financial statements were issued on april 1, 2019. accounts receivable $ 114,250 accounts payable 53,600 bank notes payable 670,000 mortgage note payable 1,270,000 other information: the bank notes, issued august 1, 2018, are due on july 31, 2019, and pay interest at a rate of 12%, payable at maturity. the mortgage note is due on march 1, 2019. interest at 11% has been paid up to december 31 (assume 11% is a realistic rate). manufacturing intended at december 31, 2018, to refinance the note on its due date with a new 10-year mortgage note. in fact, on march 1, manufacturing paid $263,000 in cash on the principal balance and refinanced the remaining $1,007,000. included in the accounts receivable balance at december 31, 2018, were two subsidiary accounts that had been overpaid and had credit balances totaling $19,650. the accounts were of two major customers who were expected to order more merchandise from manufacturing and apply the overpayments to those future purchases. on november 1, 2018, manufacturing rented a portion of its factory to a tenant for $32,400 per year, payable in advance. the payment for the 12 months ended october 31, 2019, was received as required and was credited to rent revenue. required: (1) prepare any necessary adjusting journal entries at december 31, 2018, pertaining to each item of other information (2) prepare the current and long-term liability sections of the december 31, 2018, balance sheet. balance sheet (partial) at december 31, 2018 current liabilities: total current liabilities long-term liabilities:

If modern company received $3,650 from connor young company on march 12 for the total amount of an account that had been written off on march 1, the entry to reinstate the account under the direct write-off method would include