Mackay Company, located in Ontario is preparing adjusting entries at December 31, 2021 and has identified...

 

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Mackay Company, located in Ontario is preparing adjusting entries at December 31, 2021 and has identified the following unadjusted balances: Income Tax Expense $129,800 Unearned Fees 45,000 Mortgage Payable 5.5% $180,000 HST Paid on Purchases 7,000 HST Charged on Services 12,500 Additional Information: a) $11,800 of income tax was accrued monthly from January to November. The actual amount of tax expense for the year is determined to be $145,750. b) A customer is suing the company. Legal advisors believe that the company will have to pay damages but is unable to estimate the amount. c) Mortgage payments are made on the first of each month d) $32,500 of the unearned fees are now earned as of December 31, 2021 e) Mackay submitted the HST to the Receiver General of Canada Required: Prepare any journal entries at December 31, 2021 for each of the above Mackay Company, located in Ontario is preparing adjusting entries at December 31, 2021 and has identified the following unadjusted balances: Income Tax Expense $129,800 Unearned Fees 45,000 Mortgage Payable 5.5% $180,000 HST Paid on Purchases 7,000 HST Charged on Services 12,500 Additional Information: a) $11,800 of income tax was accrued monthly from January to November. The actual amount of tax expense for the year is determined to be $145,750. b) A customer is suing the company. Legal advisors believe that the company will have to pay damages but is unable to estimate the amount. c) Mortgage payments are made on the first of each month d) $32,500 of the unearned fees are now earned as of December 31, 2021 e) Mackay submitted the HST to the Receiver General of Canada Required: Prepare any journal entries at December 31, 2021 for each of the above