ACC 291T Wk 5 Discussion – Standard Accounting Procedure

Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students.

Due Thursday

Respond to the following in a minimum of 175 words:

Respond to the following:

It is standard accounting procedure, or a generally accepted accounting principle

(GAAP), to make a journal 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.

Your company has a bank loan that requires a current ratio of 1.5 times. The owner has asked you, the bookkeeper, not to make the adjusting entry that would take the current portion from the long-term liabilities. If you make the adjusting entry, the company’s loan will need to be repaid immediately (or the loan called). What should you do?

Due Monday

Reply to at least 2 of your classmates. Be constructive and professional in your responses.