The Accounts and Balances for Paw Prints Pet Sitters on November

question 90

Essay

The accounts and balances for Paw Prints Pet Sitters on November 1 are provided below. The following transactions occurred during the month of November.
a.Collected $350 from credit customers
b.Issued a check for $700 for rent
c.Paid $1,900 for salaries
d.The owner withdrew $500 in cash for personal expenses
e.Issued a check for $200 to pay the monthly utility bill
f.Received $2,845 in cash for services performed
g.Purchased office equipment for $1,350 on credit
Using the information shown,set up T accounts for all accounts.Determine the balance for each account after all transactions have been recorded.

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Definitions:

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and any other debts.

IFRS

International Financial Reporting Standards, which are global accounting standards for preparing financial statements, making it easier to compare entities internationally.

Current Liability

An obligation that a company is required to pay off within the current fiscal year or operating cycle, essentially a rephrased definition of current liabilities.

Bank Indebtedness

A financial obligation or debt owed to a bank by an individual or corporation, usually in the form of loans or lines of credit.