On February 29, 2012, Molega Ltd.'s general ledger contained the following liability accounts:
Accounts payable..................................$42,500
CPP payable...........................................2,680
EI payable.............................................1,123
Sales tax payable.....................................5,800
Income tax payable..................................5,515
Unearned revenue..................................15,000
The following selected transactions occurred during the month:
Mar. 2 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $10,000. Interest is due at maturity.
5 Sold merchandise for cash totalling $40,000, plus 13% HST. The cost of goods sold was $24,000. Molega uses a perpetual inventory system.
9 Received the property tax bill of $18,000 for the calendar year. It is payable on May 1.
12 Provided services for customers who had made advance payments of $7,500.
13 Paid $5,800 HST to the Receiver General for sales tax collected in February.
16 Paid $9,318 to the Receiver General for amounts owing from the February payroll for employee payroll deductions of $7,323 (CPP $1,340, EI $468, and income tax $5,515) and for employee benefits of $1,995 (CPP $1,340, and EI $655).
27 Paid $30,000 to trade creditors on account.
31 Recorded and paid monthly payroll. Gross salaries totalled $16,000 and payroll deductions included CPP of $792, EI of $285, and income tax of $5,870. Employee benefits included CPP of $792 and EI of $399.
Instructions
(a) Record the above transactions.
(b) Record any required adjusting entries at March 31.
(c) Prepare the current liabilities section of the statement of financial position at March31.