Concept explainers
1.
Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and
To Journalize: The transactions in the J Pharmacy’s general journal.
2.
To prepare: The liabilities section of the balance sheet for J pharmacies.
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Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
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