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graycat145Lv1
28 Sep 2019
The followingtransactions apply to Midsouth Equipment Sales Corp. for 2014:
1. The business was started when Midsouth received $48,500 from theissue of common stock.
2. Purchased$176,000 of merchandise on account. 3. Sold merchandise for $197,500 cash (not including sales tax).Sales tax of 7 percent is collected when the merchandise is sold.The merchandise had a cost of $122,500.
4. Provided a six-month warranty on the merchandise sold. Based onindustry estimates, the warranty claims would amount to 4 percentof merchandise sales.
5. Paid the salestax to the state agency on $147,500 of the sales. 6. On September 1, 2014, borrowed $19,500 from the local bank. Thenote had a 6 percent interest rate and matures on March 1,2015.
7. Paid $5,600 forwarranty repairs during the year. 8. Paid operatingexpenses of $53,000 for the year. 9. Paid $126,000 ofaccounts payable. 10. Recorded accrued interest at the end of the year.
What is the total amount of current liabilities at December 31,2014?
The followingtransactions apply to Midsouth Equipment Sales Corp. for 2014: |
1. | The business was started when Midsouth received $48,500 from theissue of common stock. |
2. | Purchased$176,000 of merchandise on account. |
3. | Sold merchandise for $197,500 cash (not including sales tax).Sales tax of 7 percent is collected when the merchandise is sold.The merchandise had a cost of $122,500. |
4. | Provided a six-month warranty on the merchandise sold. Based onindustry estimates, the warranty claims would amount to 4 percentof merchandise sales. |
5. | Paid the salestax to the state agency on $147,500 of the sales. |
6. | On September 1, 2014, borrowed $19,500 from the local bank. Thenote had a 6 percent interest rate and matures on March 1,2015. |
7. | Paid $5,600 forwarranty repairs during the year. |
8. | Paid operatingexpenses of $53,000 for the year. |
9. | Paid $126,000 ofaccounts payable. |
10. | Recorded accrued interest at the end of the year. What is the total amount of current liabilities at December 31,2014? |
Reid WolffLv2
28 Sep 2019