When Lloyd appointed Turlock to manage her gas station-convenience store, she instructed him to require payment for purchases in case or by credit card only. Turlock stopped buying the groceries the store sold from the previous supplier and bought them at a lower price through a corporation he owned. Wiggington, a regular customer, filled her car with gas one day and found she had forgotten her purse. Since she was a weekly customer, Turlock allowed her to give him a signed piece of paper agreeing to pay for the gas the next time she filled-up. Two days later Lloyd stopped at the station to confront Turlock about the purchases from his corporation and discovered the paper signed by Wiggington. Explain Turlock's potential liabilities.

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains.the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available.two-thirds of the work related to $15,000 of cash received in advance was performed this period.the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired.wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.