Goldwater Corporation experienced these five events during 2014: a. December sales totalled $50,000, and Goldwater collected harmonized

Question:

Goldwater Corporation experienced these five events during 2014:
a. December sales totalled $50,000, and Goldwater collected harmonized sales tax (HST) of 13%. The HST will be remitted to CRA in January 2015. Reporting requirements are the segregation of the provincial portion (8%) and federal portion (5%).
b. On November 30, Goldwater received rent of $6,000 in advance for a lease on unused store space. This rent will be earned evenly over three months.
c. On September 30, Goldwater signed a six-month, 9% note to purchase store fixtures costing $12,000. The note requires payment of principal and interest at maturity.
d. Sales of $400,000 were covered by Goldwater's product warranty. At January 1, estimated warranty payable was $12,400. During the year, Goldwater recorded warranty expense of $22,300 and paid warranty claims of $24,600.
e. Goldwater owes $100,000 on a long-term note. At December 31, 5% interest since July 31 and $20,000 of this principal are payable within one year.
Requirement
For each item, indicate the account and the related amount to be reported as a current liability on the Goldwater Corporation balance sheet at December 31, 2014.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

Question Posted: