At the end of the month of January, you reconciled your credit card account. All of the transactions reconciled, and you were able to get your reconciliation to balance to $0. You want to go ahead and pay the bill to the credit card company, but the bill does not appear in the list of possible bills you can pay when you select "Pay Bills" from the Create icon. The credit card bill was $850.00. Below is the liability section of your balance sheet. Since you have already reconciled the account, how can you pay the bill? Student CompanyBalance SheetAs of January 31, 20x1TotalLIABILITIES AND EQUITYLiabilitiesCurrent Liabilities200 Accounts Payable (A/P)1,602.67205 Mastercard850.00230 Sales Tax Payable370.94Total Current Liabilities$ 2,823.61Long-Term Liabilities260 Notes PayableTotal Long-Term Liabilities5,000.00$ 5,000.00$ 7,823.61Total LiabilitiesEquity310 Retained Earnings12,756.001,642.46$ 14,398.46$ 22,222.07Net IncomeTotal EquityTOTAL LIABILITIES AND EQUITY

Credit Card: It is the card that is used for a purchase . Charges are made against a line of…

Answered: At the end of the month of January, you…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 94PSB

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At the end of the month of January, you reconciled your credit card account. All of the transactions reconciled, and you were able to get your reconciliation to balance to $0. You want to go ahead and pay the bill to the credit card company, but the bill does not appear in the list of possible bills you can pay when you select "Pay Bills" from the Create icon. The credit card bill was $850.00. Below is the liability section of your balance sheet. Since you have already reconciled the account, how can you pay the bill?

Student Company
Balance Sheet
As of January 31, 20x1
Total
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
200 Accounts Payable (A/P)
1,602.67
205 Mastercard
850.00
230 Sales Tax Payable
370.94
Total Current Liabilities
$ 2,823.61
Long-Term Liabilities
260 Notes Payable
Total Long-Term Liabilities
5,000.00
$ 5,000.00
$ 7,823.61
Total Liabilities
Equity
310 Retained Earnings
12,756.00
1,642.46
$ 14,398.46
$ 22,222.07
Net Income
Total Equity
TOTAL LIABILITIES AND EQUITY

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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