Annie's Attic Has the Following Account Balances for the Dates

question 62

Essay

Annie's Attic has the following account balances for the dates given:
$\begin{array}{|l|r|r|}\hline & \text { September } 1 & \text { September 30 } \\\hline \text { Cash } & \$ 40,000 & 60,000 \\\hline \text { Accounts Receivable } & 40,000 & 38,000 \\\hline \text { Accounts Payable } & 6,000 & ? \\\hline\end{array}$ Its net income for September 1 through September 30 was $20,000 and there were no investments by the owners or dividends paid. Determine the equity at both September 1 and September 30.

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Definitions:

Office Manager

An administrative employee who manages the day-to-day operations of a firm. In larger law firms, office managers are usually called legal administrators.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company.

Professional Corporation

A legal structure allowing licensed professionals, such as lawyers, doctors, or accountants, to form a corporation with certain tax and liability advantages.

Partners

Individuals who share ownership and responsibilities in managing a business or organization.