Juliana Limited has an October 31 year end. On October 1, 2020 Juliana had the following...

 

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Juliana Limited has an October 31 year end. On October 1, 2020 Juliana had the following current liabilities listed on its books: Bank overdraft Accounts payable CPP, El and income tax payable Unearned revenues.. During October 2020 Juliana engaged in the following transactions: Oct 1 Oct 5 Oct 12 Oct 15 Oct 20 Oct 21 Oct 21 Oct 22 Oct 30 $23,250 112,500 8,620 12,000 Negotiated a $50,000 line of credit with their bank to replace the bank overdraft. Sold goods worth $30,000 on which they had previously received a $12,000 deposit. The balance is due in 30 days. Bought $20,000 of inventory on credit, terms of 30 days. Paid amounts due the Government of Canada for the payroll amounts outstanding from September 30. Paid $87,000 owing to a supplier. Received $5,000 from a client for work that will be performed in January 2018. Sold $56,000 of goods half for cash, half on credit. Made a $10,000 payment on the line of credit. Paid the monthly payroll amounts to employees. The gross payroll was $16,200. Amounts withheld from the employees' cheques were as follows: $802 $259 Income tax $2,800 At this time, the company also recorded their liability for amounts due to the government for CPP and El. ● ● Canada pension plan premiums (CPP) Employment insurance premiums (El) Oct 31 Declared $5,000 of dividends payable next year. Instructions Prepare all of the journal entries required as a result of the above transactions. Juliana Limited has an October 31 year end. On October 1, 2020 Juliana had the following current liabilities listed on its books: Bank overdraft Accounts payable CPP, El and income tax payable Unearned revenues.. During October 2020 Juliana engaged in the following transactions: Oct 1 Oct 5 Oct 12 Oct 15 Oct 20 Oct 21 Oct 21 Oct 22 Oct 30 $23,250 112,500 8,620 12,000 Negotiated a $50,000 line of credit with their bank to replace the bank overdraft. Sold goods worth $30,000 on which they had previously received a $12,000 deposit. The balance is due in 30 days. Bought $20,000 of inventory on credit, terms of 30 days. Paid amounts due the Government of Canada for the payroll amounts outstanding from September 30. Paid $87,000 owing to a supplier. Received $5,000 from a client for work that will be performed in January 2018. Sold $56,000 of goods half for cash, half on credit. Made a $10,000 payment on the line of credit. Paid the monthly payroll amounts to employees. The gross payroll was $16,200. Amounts withheld from the employees' cheques were as follows: $802 $259 Income tax $2,800 At this time, the company also recorded their liability for amounts due to the government for CPP and El. ● ● Canada pension plan premiums (CPP) Employment insurance premiums (El) Oct 31 Declared $5,000 of dividends payable next year. Instructions Prepare all of the journal entries required as a result of the above transactions.

Answer rating: 100% (QA)

Date Particulars Debit Credit 1Oct Bank Overdraft 23250 To Bank Loan 23250 Being Line of credit of 5... View the full answer