Gibco Sportswear Ltd. is a wholesale company that buys sports clothing from manufacturers and sells it to various retail stores. It had the following transactions during its first year of operations. The company's fiscal year end is December 31 1. Issued common shares for $550,000. 2. Paid an insurance premium of $24,000 on May 1 that provides coverage for the 12-month period starting August 1. 3. Purchased $79,500 of clothing inventory on account. 4. Paid $36,900 in wages to employees and still owed $12,000 5. Sales recorded for the period totalled $195,000, 60% on credit. The cost of the inventory sold was $95,000 6. Cash collections on customer accounts totalled $16,000. 7. Payments to suppliers for clothing inventory purchased for the year totaled $45,000. 8. Purchased some new office equipment on June 1 that cost $10,000 on credit. This machine has a useful life of 5 years and a residual Lulated $45,000. 8. Purchased some new office equipment on June 1 that cost $10,000 on credit. This machine has a useful life of 5 years and a residual value of $1,200. 9. The company paid cash of $2,000 as a deposit on a new piece of machinery that is expected to be received within a year. The value of the equipment is $12,000 and will have a useful life of 6 years and has no residual value. 10. A customer paid a cash deposit of $1,500 for an order of clothes that will be delivered next year. The value of the clothes is $4,000. 11. Dividends of $2,000 were declared and paid b. Calculate the ending cash balance. DO NOT PUT COMMAS OR $ SIGNS IN YOUR ANSWER
