?? ? ? Chen Wholesalers Ltd. has a December 31 year end. The company incurred the following
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Chen Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: Chen's cash register showed the following totals at the end of the day on March 17: pre-tax sales $50,000, GST $2,500, and PST $3,500. 1. 2. 3. 4. 5. 6. 7. Chen remitted $49,000 of sales taxes owing from March to the government on April 30. Chen received its property tax bill for the calendar year for $52,800 on March 31, payable May 31. Chen recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Chen paid its employees for the week of August 15 on August 20. The gross pay was $81,000. The company deducted $4,128 for CPP, $1,312 for El, $6,400 for pension, and $16,020 for income tax from the employees' pay. Chen recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837, respectively. On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions above were paid. On December 31, Chen's legal counsel believes that the company will have to pay damages of $50,000 next year to a local utility company for failing to pay it on time during the current year. (Hint: This will affect the Utilities Expense account.) Aug. 22 # (To record payroll and employee deductions) (To record employee benefits) Record journal entries for the transactions above. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented whe the amount is entered. Do not indent manually.) Date Account Titles and Explanation + + July 1 + Debit Credit Assuming that Chen's year end is December 31 and that it makes adjusting entries annually, prepare any adjusting entries required for the property tax in transaction 2 and the interest in transaction 5. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation # (To record property tax) (To record interest) Debit Credit Record the journal entry for the settlement of the bank loan in transaction 5 on April 1. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Apr. 1 Debit Credit Chen Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: Chen's cash register showed the following totals at the end of the day on March 17: pre-tax sales $50,000, GST $2,500, and PST $3,500. 1. 2. 3. 4. 5. 6. 7. Chen remitted $49,000 of sales taxes owing from March to the government on April 30. Chen received its property tax bill for the calendar year for $52,800 on March 31, payable May 31. Chen recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Chen paid its employees for the week of August 15 on August 20. The gross pay was $81,000. The company deducted $4,128 for CPP, $1,312 for El, $6,400 for pension, and $16,020 for income tax from the employees' pay. Chen recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837, respectively. On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions above were paid. On December 31, Chen's legal counsel believes that the company will have to pay damages of $50,000 next year to a local utility company for failing to pay it on time during the current year. (Hint: This will affect the Utilities Expense account.) Aug. 22 # (To record payroll and employee deductions) (To record employee benefits) Record journal entries for the transactions above. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented whe the amount is entered. Do not indent manually.) Date Account Titles and Explanation + + July 1 + Debit Credit Assuming that Chen's year end is December 31 and that it makes adjusting entries annually, prepare any adjusting entries required for the property tax in transaction 2 and the interest in transaction 5. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation # (To record property tax) (To record interest) Debit Credit Record the journal entry for the settlement of the bank loan in transaction 5 on April 1. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Apr. 1 Debit Credit
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Answer Date Particulars Debit Credit Mar17 Cash 5600000 Sales 5000000 Sales Tax Payable 60000... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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