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Posted: April 20th, 2022
I have taken on the job of tre
Question description
I have taken on the job of treasurer and, I am setting up accounts for a gymnastics booster club. We collect $800 from each gymnast twice a year. This money is deposited into an individual gymnast assessment account and all competition expenses are deducted and paid from these accounts. Collectively, all of this money is located in an Assessment checking account. I have set up our General Fund and Assessment checking accounts as asset accounts, and I set up each gymnast’s account as an accounts payable account. So the total credit balance of all the gymnasts’ accounts equals the debit balance of the Assessment checking account. Here’s my question: One gymnasts started this accounting period with a negative balance in her individual account. How do I set her account up and record the transaction when she brings her account up to date?
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