Omar and Janet own a small jewelry-supply business called Rings and Things. From January through April, the company generated a fair amount of business. However, Janet and Omar’s owner equity is lower than they had expected, and they seem to be losing money every month, even though sales are steady. Below is April’s balance sheet for Rings and Things. Assets

Cash (bills and coins) $35

Bank checking account $1,997

Materials (beads and wires) $40

Finished jewelry $100

Office supplies $50

Furniture $100

Total $2,322

Liabilities

Balance on loans $925

Payroll $1,000

(1 salesperson who works 20 hours/month)

Total $1,925

Assets – Liabilities = Owner Equity

$2,322 total assets

– $1,925 total liabilities

= $407 owner equity

QUESTION
Review the liabilities section of the balance sheet for Rings and Things. What problem can you identify with the payroll information, particularly as it relates to how much the one employee gets paid? What solution would you offer Janet and Omar?

PLEASE HELP ME I WILL GIVE BRANLIEST

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