On January 1, 2023, Schmitt Inc.’s general ledger had these liability accounts:

In addition, Schmitt had a balance in HST Receivable of $4,260 at January 1, 2023. Schmitt uses a periodic inventory system, operates in the province of Ontario where HST is 13%, and follows ASPE. Schmitt’s required premium for EI is 1.4 times the employee premium; for CPP, it is 1.0 times the employee contribution.

In January 2024, the following transactions occurred:

Jan.

5 Sold merchandise for $15,800 cash, plus HST.

12 Provided services for customers who had previously made advance payments of $7,000.

14 Paid the Receiver General for Canada HST invoiced in December 2022.

15 Paid the Receiver General for Canada for amounts owing from the December payroll for CPP, EI, and income tax.

20 Purchased equipment on account for $6,328, taxes included.

31 Recorded and paid the monthly payroll. Gross salaries were $25,350. Amounts withheld include CPP of $1,183, EI of $464, and income tax of $4,563.

31 Recorded employee benefits, which include CPP and EI.

InstructionsPrepare all the journal entries necessary to record the transactions noted above as they occurred.

Transcribed Image Text:

CPP contributions payable El premiums payable HST payable Employee income tax deductions payable Unearned revenue $ 2,152 1,019. 11,390 4,563 16,000