Exercise 10-2 Chen Wholesalers Ltd. incurred the following transactions related
ID: 2546100 • Letter: E
Question
Exercise 10-2 Chen Wholesalers Ltd. incurred the following transactions related to current liabilities 1. Chen's cash register showed the following totals at the end of the day on March 17: pre-tax sales $54,000 GST $2,700; and PST $3,780 2. Chen received its property tax bill for the calendar year for $53,400 on May 1, payable July 1 3. Chen's gross payrall for the week of August 15 was $83,400. The company deducted $4,260 for CPP, $1,568 for EI, $5,800 for pension, and $16,590 for income tax from the employees' pay. The employer portions of CPP and EI for the week were $4,260 and $2,195 respectively 4. On August 22, all amounts owing for employee income taxes, CPP, and EI pertaining to the payroll in transaction 3 above were paid. 5. On October 1, Chen borrowed 130,000 from First Bank for a six-month period; 4% interest on the bank loan is payable on April 1 Record journal entries for the transactions above. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Explanation / Answer
Journal Entries :-
Date Particulars Debit($) Credit($) Mar 17 Cash a/c Dr. 60480 To Sales Revenue A/c 54000 To GST Payable A/c 2700 To PST Payable A/c 3780 May 1 Property Tax Expense A/c Dr. 53400 To Property Tax Payable A/c 53400 Jul 1 Property Tax Payable A/c Dr. 53400 To Cash A/c 53400 Aug 15 Salaries A/c Dr. 83400 To Salaries Payable A/c 55272 To CPP Payable A/c 4260 To EI Payable A/c 1568 To Pension Payable A/c 5800 To Income Tax Withheld A/c 16500 Aug 15 Payroll Tax Expense A/c Dr. 6455 To CPP Payable A/c 4260 To EI Payable A/c 2195 Aug 22 CPP Payable A/c Dr. 8520 EI Payable A/c Dr. 3763 Pension Payable A/c Dr. 5800 To Cash A/c 18083 Oct 1 Cash A/c Dr. 130000 To First Bank Loan A/c 130000Related Questions
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