On February 28, 2018, Molega Ltd.s general ledger contained the following liability accounts: Accounts payable $39,700 CPP
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Question:
On February 28, 2018, Molega Ltd.’s general ledger contained the following liability accounts:
Accounts payable | $39,700 | ||
CPP payable | 2,860 | ||
EI payable | 1,037 | ||
Sales tax payable | 5,900 | ||
Employee income tax payable | 4,969 | ||
Unearned revenue | 16,000 |
The following selected transactions occurred during the month:
Mar. | 2 | Issued a three-month, 6% note payable in exchange for an account payable in the amount of $9,200. Interest is due at maturity. | ||
5 | Sold inventory for cash totaling $38,500, plus 13% HST. The cost of goods sold was $25,000. Mega uses a perpetual inventory system. | |||
9 | Received the property tax bill of $18,000 for the calendar year. It is payable on May 1. | |||
12 | Provided services for customers who had made advance payments of $11,300 including 13% HST, which is not payable until the related sale occurs. | |||
13 | Paid $5,900 HST to the Receiver General for sales tax collected in February. | |||
16 | Paid $8,866 to the Receiver General for amounts owing from the February payroll for employee payroll deductions of $6,831 (CPP $1,430, EI $432, and employee income tax $4,969) and for employee benefits of $2,035 (CPP $1,430, and EI $605). | |||
27 | Paid $28,200 to trade creditors on account. | |||
31 | Paid employees for the month. Gross salaries totaled $15,700 and payroll deductions included CPP of $803, EI of $295, and employee income tax of $6,160. Employee benefits included CPP of $803 and EI of $413. |
Record the above transactions.
(Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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