The balance of the credit line at yearend is:
Gibco Limited has an October 31 year end. On September 30, 2020 Gibco had the following current liabilities listed on its books:
Bank credit line........................................... $25,300
Accounts payable........................................ 110,500
CPP, EI and income tax payable.................. 19,620
Unearned revenues.................................... 22,000
During October 2020 Gibco engaged in the following transactions:
Oct 1 Paid $12,000 on the credit line with their bank
Oct 5 Sold goods for $40,000 on which they had previously received a $10,000 deposit. The balance is due in 30 days.
Oct 12 Bought $26,000 of inventory on credit, terms of 30 days.
Oct 15 Paid amounts due the Government of Canada for the payroll amounts outstanding from September 30.
Oct 20 Paid $97,000 owing to a supplier.
Oct 21 Received $5,000 from a client for work that will be performed in January 2021.
Oct 21 Sold $76,000 of goods half for cash, half on credit.
Oct 30 Paid the monthly payroll amounts to employees. The gross payroll was $17,200. Amounts withheld from the employees' cheques were as follows:
Canada pension plan premiums (CPP) $852
Employment insurance premiums (EI) $280
Income tax $3,800
At this time, the company also recorded their liability for amounts due to the government for CPP ($852) and EI ($392).
The balance of the credit line at yearend is:
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