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The Bike and Hike 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

101	Cash	$	21,800	Dr.
131	Equipment		65,000	Dr.
201	Notes payable
205	Accounts payable		4,970	Cr.
501	Purchases
503	Purchases ret. and allow.
504	Purchases discounts
611	Rent expense
614	Salaries expense
617	Telephone expense

DATE				TRANSACTIONS
June	1			Issued Check 1101 for $3,300 to pay the monthly rent.
	3			Purchased merchandise for $3,500 from Perfect Fit Shoe Shop, Invoice 746, dated June 1; the terms are 2/10, n/30.
	5			Purchased new store equipment for $5,400 from Middleton Company, Invoice 9067 dated June 4, net payable in 30 days.
	7			Issued Check 1102 for $1,560 to Leisure Wear Clothing Company, a creditor, in payment of Invoice 3342 of May 9.
	8			Issued Check 1103 for $2,989 to Perfect Fit Shoe Shop, a creditor, in payment of Invoice 746 dated June 1 ($3,050), less a cash discount ($61).
	12			Purchased merchandise for $2,275 from Juandas Coat Shop, Invoice 9922, dated June 9, net due and payable in 30 days.
	15			Issued Check 1104 for $237 to pay the monthly telephone bill.
	18			Received Credit Memorandum 203 for $775 from Juandas Coat Shop for defective goods that were returned; the original purchase was made on Invoice 9922 dated June 9.
	21			Purchased new store equipment for $10,400 from Warren Company; issued a three-month promissory note with interest at 10 percent.
	23			Purchased merchandise for $6,300 from The Motor Speedway, Invoice 1927, dated June 20; terms of 2/10, n/30.
	25			Issued Check 1105 for $1,475 to Juandas Coat Shop, a creditor, as payment on account, Invoice 7416 dated May 28.
	28			Issued Check 1106 for $6,174 to The Motor Speedway, a creditor, in payment of Invoice 1927 of June 20 ($6,300), less a cash discount ($126).
	30			Purchased merchandise for $2,070 from Jogging Shoes Store, Invoice 4713, dated June 26; the terms are 1/10, n/30.
	30			Issued Check 1107 for $5,700 to pay the monthly salaries of the employees.

Required:

1. Open the general ledger accounts and enter the balances as of June 1, 20X1.
2. Record the transactions in a purchases journal, a cash payments journal, and a general journal.
3. Post the entries from the general journal and from the Other Accounts Debit section of the cash payments journal to the proper general ledger accounts.
4. Post the column totals from the special journals to the general ledger.
5. Show how the firms net cost of purchases would be reported on its income statement for the month ended June 30.

Analyze: What total liabilities does the company have at month-end?

ost the opening balances and transactions into the appropriate ledger accounts. Record the transactions in a purchases journal as of June 20X1. Record the transactions in a cash payments journal as of June 201. Record the transactions in a general journal as of June 201. 1 Record the purchase of new store equipment for $5,400 from Bigtown Company, Invoice 9067 dated June 4, net payable in 30 days. 2 Record the return of defective goods, Credit Memo 203, original purchase made on Invoice 9922 on June 9. 3 Record the issuance of a 3-month, 10% note to Warren Company to purchase new store equipment. Show how the firm's net cost of purchases would be reported on its income statement for the month e Assuming that all relevant information is included in this problem, what total liabilities does the company have at month-end

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