The Bike and Hike Outlet is a retail store. Transactions involving purchases and cash payments for...
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The Bike and Hike Outlet is a retail store. Transactions involving purchases and cash payments for the firm during June 2019 are listed below, as are the general ledger accounts used to record these transactions. GENERAL LEDGER ACCOUNTS 101 Cash. 131 Equipment 201 Notes Payable 205 Accounts Payable 501 Purchases 503 Purchases Ret. and Allow. 504 Purchases Discounts 611 Rent Expense 614 Salaries Expense 617 Telephone Expense $19,800 Dr. 60,000 Dr. 4,920 Cr. DATE June 1 Issued Check 1101 for $2,800 to pay the monthly rent. 3 Purchased merchandise for $3,000 from Perfect Fit Shoe Shop, Invoice 746, dated June 1; the terms are 2/10, n/30. 5 Purchased new store equipment for $4,900 from Middleton Company, Invoice 9067 dated June 4, net payable in 30 days. Issued Check 1102 for $1,510 to Leisure Wear Clothing Company, a creditor, in payment of Invoice 3342 of May 9. Issued Check 1103 for $2,744 to Perfect Fit Shoe Shop, a creditor, in payment of Invoice 746 dated June 1 ($2,800), less a cash discount ($56). 12 Purchased merchandise for $2,150 from Juandas Coat Shop, Invoice 9922, dated June 9, net due and payable in 30 days. Issued Check 1104 for $232 to pay the monthly telephone bill. Received Credit Memorandum 203 for $650 from Juandas Coat Shop for defective goods that were returned; the original purchase was made on Invoice 9922 dated June 9. Purchased new store equipment for $9,900 from Warren Company; issued a three-month promissory note with interest at 12 percent. 7 8 15 18 21 23 25 28 30 30 TRANSACTIONS Purchased merchandise for $5,800 from The Motor Speedway, Invoice 1927, dated June 20; terms of 2/10, n/30. Issued Check 1105 for $1,350 to Juandas Coat Shop, a creditor, in payment of Invoice 7416 dated May 28. Issued Check 1106 for $5,684 to The Motor Speedway, a creditor, in payment of Invoice 1927 of June 20 ($5,800), less a cash discount ($116). Purchased merchandise for $2,020 from Jogging Shoes Store, Invoice 4713, dated June 26; the terms are 1/10, n/30. Issued Check 1107 for $5,200 to pay the monthly salaries of the employees. Post the opening balances and transactions into the appropriate ledger accounts. Equipment Date June 1, 2019 Cash Date Debit Notes Payable Debit Account No: 101 Credit Balance Account No: 201 Credit Balance Date June 1, 2019 Debit Accounts Payable Debit Date June 01, 2019 Account No: 131 Credit Balance Account No: 205 Credit Balance Record the transactions in a purchases journal as of June 2019. Date Purchased From June 30, 2019 Totals PURCHASES JOURNAL Invoice Number Invoice Date Terms Purchases DR./Accounts Payable CR. $ 0 Record the transactions in a cash payments journal as of June 2019. Date June 30, 2019 CK. No Totals Description CASH PAYMENTS JOURNAL Accounts Payable Debit $ 0 Account Name Amount $ Purchases Cash Discounts Credit Credit 0 $ 0 $ 0 Journal entry worksheet 1 2 3 Record the purchase of new store equipment for $4,900 from Middleton Company, Invoice 9067 dated June 4, net payable in 30 days. Note: Enter debits before credits. Date June 05, 2019 General Journal Debit Credit Record the return of defective goods, Credit Memo 203, original purchase made on Invoice 9922 on June 9. Note: Enter debits before credits. Date June 18, 2019 General Journal Debit Credit Record the issuance of a 3-month, 12% note to Warren Company to purchase new store equipment. Note: Enter debits before credits. Date June 21, 2019 General Journal Debit Credit Net purchases THE BIKE AND HIKE OUTLET Partial Income Statement Month Ended June 30, 2019 0 Assuming that all relevant information is included in this problem, what total liabilities does the company have at month-end? Total liabilities The Bike and Hike Outlet is a retail store. Transactions involving purchases and cash payments for the firm during June 2019 are listed below, as are the general ledger accounts used to record these transactions. GENERAL LEDGER ACCOUNTS 101 Cash. 131 Equipment 201 Notes Payable 205 Accounts Payable 501 Purchases 503 Purchases Ret. and Allow. 504 Purchases Discounts 611 Rent Expense 614 Salaries Expense 617 Telephone Expense $19,800 Dr. 60,000 Dr. 4,920 Cr. DATE June 1 Issued Check 1101 for $2,800 to pay the monthly rent. 3 Purchased merchandise for $3,000 from Perfect Fit Shoe Shop, Invoice 746, dated June 1; the terms are 2/10, n/30. 5 Purchased new store equipment for $4,900 from Middleton Company, Invoice 9067 dated June 4, net payable in 30 days. Issued Check 1102 for $1,510 to Leisure Wear Clothing Company, a creditor, in payment of Invoice 3342 of May 9. Issued Check 1103 for $2,744 to Perfect Fit Shoe Shop, a creditor, in payment of Invoice 746 dated June 1 ($2,800), less a cash discount ($56). 12 Purchased merchandise for $2,150 from Juandas Coat Shop, Invoice 9922, dated June 9, net due and payable in 30 days. Issued Check 1104 for $232 to pay the monthly telephone bill. Received Credit Memorandum 203 for $650 from Juandas Coat Shop for defective goods that were returned; the original purchase was made on Invoice 9922 dated June 9. Purchased new store equipment for $9,900 from Warren Company; issued a three-month promissory note with interest at 12 percent. 7 8 15 18 21 23 25 28 30 30 TRANSACTIONS Purchased merchandise for $5,800 from The Motor Speedway, Invoice 1927, dated June 20; terms of 2/10, n/30. Issued Check 1105 for $1,350 to Juandas Coat Shop, a creditor, in payment of Invoice 7416 dated May 28. Issued Check 1106 for $5,684 to The Motor Speedway, a creditor, in payment of Invoice 1927 of June 20 ($5,800), less a cash discount ($116). Purchased merchandise for $2,020 from Jogging Shoes Store, Invoice 4713, dated June 26; the terms are 1/10, n/30. Issued Check 1107 for $5,200 to pay the monthly salaries of the employees. Post the opening balances and transactions into the appropriate ledger accounts. Equipment Date June 1, 2019 Cash Date Debit Notes Payable Debit Account No: 101 Credit Balance Account No: 201 Credit Balance Date June 1, 2019 Debit Accounts Payable Debit Date June 01, 2019 Account No: 131 Credit Balance Account No: 205 Credit Balance Record the transactions in a purchases journal as of June 2019. Date Purchased From June 30, 2019 Totals PURCHASES JOURNAL Invoice Number Invoice Date Terms Purchases DR./Accounts Payable CR. $ 0 Record the transactions in a cash payments journal as of June 2019. Date June 30, 2019 CK. No Totals Description CASH PAYMENTS JOURNAL Accounts Payable Debit $ 0 Account Name Amount $ Purchases Cash Discounts Credit Credit 0 $ 0 $ 0 Journal entry worksheet 1 2 3 Record the purchase of new store equipment for $4,900 from Middleton Company, Invoice 9067 dated June 4, net payable in 30 days. Note: Enter debits before credits. Date June 05, 2019 General Journal Debit Credit Record the return of defective goods, Credit Memo 203, original purchase made on Invoice 9922 on June 9. Note: Enter debits before credits. Date June 18, 2019 General Journal Debit Credit Record the issuance of a 3-month, 12% note to Warren Company to purchase new store equipment. Note: Enter debits before credits. Date June 21, 2019 General Journal Debit Credit Net purchases THE BIKE AND HIKE OUTLET Partial Income Statement Month Ended June 30, 2019 0 Assuming that all relevant information is included in this problem, what total liabilities does the company have at month-end? Total liabilities
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College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
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