Exercise 10- Chen Wholesalers Ltd. incurred the following transactions related t
ID: 2546103 • Letter: E
Question
Exercise 10- 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 weck 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 tities are automatically indented when the amount is entered. Do not indent manually.)Explanation / Answer
CHEN WHOLESALERS LTD General journal for the current year Date Account Title Debit Credit Mar.17 Cash 60480 Sales 54000 GST Payable 2700 SCT Payable 3780 (Cash sales for Mar.17) May.1 Property Taxes expense 53400 Property tax payable 53400 (Property tax bill accounted) July.1 Prpoerty tax payable 53400 Cash 53400 (Property tax paid) Aug.15 Salaries and wages expense 83400 CPP payable 4260 EI payable 1568 Pension payable 5800 Income tax payable 16590 Salaries and wages payable 55182 (Payroll for the week of August 15 recorded) Payroll taxes 6455 CPP payable 4260 EI payable 2195 (Employer's share of EI and CPP) Aug.22 CPP payable 8520 EI payable 3763 Income tax payable 16590 Cash 28873 (CPP,EI and Income tax dues paid) Oct.1 Cash 130000 Bank loan payable 130000 (Cash borrowed on 4% loan from First National Bank) Date Account Title Debit Credit Dec.31 Prepiad Property tax 17800 Property tax expense 17800 (Ptoperty tax paid from Jan. To April next year recorded) Dec.31 Interest Expense 1300 Interest Payable 1300 (Interest expense on the bank loan for Oct.,Nov. And Dec recorded) Date Account Title Debit Credit Apr.1 Interest Expense 1300 Interest Payable 1300 Bank loan 130000 Cash 132600 (Repayment of bank loan with interest accrued accounted)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.