Earlier in the month, Harrison was informed that one of the firm's partners withdrew $1,300 from the firm, so he recorded a transaction to the owner's drawing account. To close out the $1,300 balance, Harrison must record a debit to the account, and a credit to the account for $1,300.

Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.