The Hike and Bike Outlet is a retail store. Transactions involving purchases and cash payments for the firm during June 20X1 are listed below, as are the general ledger accounts used to record these transactions.
GENERAL LEDGER ACCOUNTS
101Cash$25,900Dr.131Equipment 68,000Dr.201Notes payable 205Accounts payable 4,980Cr.501Purchases 503Purchases ret. and allow. 504Purchases discounts 611Rent expense 614Salaries expense 617Telephone expense
DATE TRANSACTIONSJune1 Issued Check 1101 for $3,700 to pay the monthly rent. 3 Purchased merchandise for $4,100 from Perfect Fit Shoe Shop, Invoice 746, dated June 1; the terms are 2/10, n/30. 5 Purchased new store equipment for $5,700 from Bigtown Company, Invoice 9067 dated June 4, net payable in 30 days. 7 Issued Check 1102 for $1,570 to Take a Break Clothing Company, a creditor, in payment of Invoice 3342 of May 9. 8 Issued Check 1103 for $4,018 to Perfect Fit Shoe Shop, a creditor, in payment of Invoice 746 dated June 1 ($4,100), less a cash discount ($82). 12 Purchased merchandise for $2,500 from Jim's Sweat Shop, Invoice 9922, dated June 9, net due and payable in 30 days. 15 Issued Check 1104 for $438 to pay the monthly telephone bill. 18 Received Credit Memorandum 203 for $700 from Jim's Sweat Shop for defective goods that were returned; the original purchase was made on Invoice 9922 dated June 9. 21 Purchased new store equipment for $10,750 from LA Sports Equipment Company; issued a three-month promissory note with interest at 12 percent. 23 Purchased merchandise for $6,200 from Beautiful trails, Invoice 1927, dated June 20; terms of 2/10, n/30. 25 Issued Check 1105 for $1,600 to Jim's Sweat Shop, a creditor, as payment on account, Invoice 7416 dated May 28. 28 Issued Check 1106 for $6,076 to Beautiful Trails, a creditor, in payment of Invoice 1927 of June 20 ($6,200), less a cash discount ($124). 30 Purchased merchandise for $2,180 from The Jogging Shoe LLC, Invoice 4713, dated June 26; the terms are 1/10, n/30. 30 Issued Check 1107 for $6,800 to pay the monthly salaries of the employees.
What total liabilities does the company have at month-end?
Unlock access to this and over
10,000 step-by-step explanations
Have an account? Log In