Quantum Leap is a Vancouver-based company that provides online tutoring services for university-level business courses. The company has a March 31st year-end. The bookkeeper for Quantum Leap (The Company) has recorded most of the transactions for the February and March 2013 period, but has asked you to prepare the journal entries for the following transactions: February 1 The Company signed up and received cash payment from 75 new customers for its three month “Get through ACCT 100” package. The total fees for this package are $120 per customer and entitle the customer to 10 hours of online assistance each month, February, March and April. February 28 The Company paid its employees. The total gross monthly payroll was $100,000 and the Company withheld (deducted) CPP premiums of $5,500, EI premiums of $3,000 and income taxes of $25,000 from the employees’ cheques. The net pay cheques of $66,500 were given to the employees on this date.

February 28 The Company recorded its portion of the CPP and EI premiums. The CPP premiums were $5,500 and the EI premiums were $4,200.

March 15 The Company paid the government the total amount of source deductions, including the employers’ premiums, related to the February payroll. 

March 31 Record the adjusting entry required related to the recognition of revenues from the “Get through ACCT 100 package”. (the Feb 1 transaction) 

Required: Prepare all the journal entries required as a result of the above information.

Answer rating: 100% (QA)

JOURNAL ENTRIES Date Accounts Debit Credit 1Feb Cash 9000 75120 Unearned Fee ... View the full answer