On January 1, 2012, Burlington Inc.'s general ledger contained these opening balances for its liability accounts: The

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On January 1, 2012, Burlington Inc.'s general ledger contained these opening balances for its liability accounts:
On January 1, 2012, Burlington Inc.'s general ledger contained these

The following selected transactions occurred during the month:
Jan. 5 Sold merchandise for cash totaling $20,000, plus 5% GST and 7% PST. The cost of goods sold was $14,000. Burlington uses a perpetual inventory system.
13 Paid $18,000 ($7,500 GST to the Receiver General and $10,500 PST to the provincial Minister of Finance) for sales taxes collected in December.
14 Paid $13,108 to the Receiver General for amounts owing from the December payroll for the employee payroll deductions of $10,271 (CPP $1,905, EI $666, and income tax $7,700) and employee benefits of $2,837 (CPP $1,905, and EI $932).
15 Borrowed $18,000 from HSBC Bank for three months; 6% interest is payable monthly on the 15th of each month.
19 Provided services for customers who had made advance payments of $7,000.
22 Paid $32,000 to trade creditors on account.
28 Received assessment of property taxes of $4,200 for the calendar year. They are payable on March 1.
29 Paid monthly payroll. Gross salaries totalled $40,000 and payroll deductions include CPP of $1,980, EI of $712, and income tax of $9,474. Employee benefits included CPP of $1,980 and EI of $997.
Instructions
(a) Record the above transactions.
(b) Record any required adjusting entries at January 31.
(c) Prepare the current liabilities section of the statement of financial position at January 31.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118024492

5th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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