Question: Alexis opened a dance studio, where she gave lessons to children after school and couples at night. The business is organized as a sole proprietorship
Alexis opened a dance studio, where she gave lessons to children after school and couples at night. The business is organized as a sole proprietorship and has the accounts listed in the ledger with the T accounts. The transactions are:
October : Started the business with a cash investment of $
October : Paid the rent for the next months of $
October : Purchased office supplies on account from Staples worth $
October : Borrowed cash from the bank by signing a promissory note of $ and the money was deposited into the business' account.
October : Paid for utilities for this month of $
October : Paid $ to Staples on account.
October : Received $ cash for dance lessons starting next month from a couple who want to prepare for their wedding dance.
October : Paid the salaries of other dance instructors for the month for a total of $
October : Recorded dance lesson services for the month of $ cash AND $ from customers on account.
October : Received $ cash on account.
Show the computation of Debt Ratio below:
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
