Leon€™s Furniture Limited is one of Canada€™s largest home furnishing retailers, with a network of 75 stores selling a wide range of furniture, major appliances and home electronics. The company reported the following items in its statement of financial position dated December 31, 2012 ( in thousands of Canadian dollars):

Required:
1. Define each of the current liabilities and identify the types of transactions that cause each liability to change (increase, decrease).
2. The company reported that $ 7,594 of deferred warranty plan revenue was earned during fiscal year 2012. Determine the amount that was collected in advance from customers during 2012, and prepare the related journal entry.
3. The company€™s board of directors declared dividends of $ 28,047 during 2012. Prepare the journal entries to record the declaration and payment of dividends during 2012.

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December 31.2012 Dcember 31, 2011 Current liabilities $73,542 20,386 7.055 14,743 $86,357 19,157 17,457 16,152 Trade and other payables Customers' deposits Deferred warranty plan revenue