P$10\mathrm{.}1$B $($LO $1,2,3)($Record and present current liabilities.$)$ On January $1,2024,$ Burlington

Inc.$\text{'}$s general ledger contained these opening balances for its liability accounts:

The following selected transactions occurred during the month.

Jan. $5$ Sold inventory for cash totalling $$20,000,$ plus $5\%$ GST and $7\%$ PST$.$ The cost of goods sold was

$$14,000.$ Burlington uses a perpetual inventory system.

$14$ Paid $$13,108$ to the government for amounts owing from the December payroll for the employee

payroll deductions of $$10,271($CPP $$1,905,$ EI $$666,$ and employee income tax $$7,700)$ and

employee benefits of $$2,837($CPP $$1,905$ and EI $$932).$

$15$ Borrowed $$18,000$ from Evergreen Finance Ltd$.$ by issuing a note payable due in three months; $6\%$

interest is payable at maturity.

$19$ Provided services for customers who paid $$11,200$ plus the applicable GST and PST$.$

$22$ Paid $$32,000$ to trade creditors on account.

$29$ Recorded pay owing to employees for the month. Gross salaries totalled $$40,000$ and payroll

deductions included CPP of $$2,114,$ EI of $$632,$ and employee income tax of $$5,740.$ Employee

benefits included CPP of $$2,114$ and EI of $$885.$

$31$ Remitted $$18,000($$$7,500$ GST and $$10,500$ PST to the applicable governments$)$ for sales taxes

collected in December.

Instructions

a$.$ Record the above transactions.

b$.$ Record any required adjusting entries at January $31.($The company records adjusting

entries at the end of every month.$)$

c$.$ Prepare the current liabilities section of the statement of financial position at January

Hint: For part b$.,$ make adjusting entries for the nearest $\frac{1}{2}$ month.