Question
Can you help find the total current liabilities please for the below problem? I keep getting it wrong. ( I got $78,922 and it was
Can you help find the total current liabilities please for the below problem? I keep getting it wrong. ( I got $78,922 and it was wrong)
The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $177,000 on account. Sold equipment for $209,500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $134,500. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. Paid the sales tax to the state agency on $159,500 of the sales. On September 1, 2018, borrowed $20,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, 2019. Paid $5,500 for warranty repairs during the year. Paid operating expenses of $55,500 for the year. Paid $124,300 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.
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