On January 1, 2012, Burlington Inc.'s general ledger contained these opening balances for its liability accounts:

The following selected transactions occurred during the month:
Jan. 5 Sold merchandise for cash totaling $20,000, plus 5% GST and 7% PST. The cost of goods sold was $14,000. Burlington uses a perpetual inventory system.
13 Paid $18,000 ($7,500 GST to the Receiver General and $10,500 PST to the provincial Minister of Finance) for sales taxes collected in December.
14 Paid $13,108 to the Receiver General for amounts owing from the December payroll for the employee payroll deductions of $10,271 (CPP $1,905, EI $666, and income tax $7,700) and employee benefits of $2,837 (CPP $1,905, and EI $932).
15 Borrowed $18,000 from HSBC Bank for three months; 6% interest is payable monthly on the 15th of each month.
19 Provided services for customers who had made advance payments of $7,000.
22 Paid $32,000 to trade creditors on account.
28 Received assessment of property taxes of $4,200 for the calendar year. They are payable on March 1.
29 Paid monthly payroll. Gross salaries totalled $40,000 and payroll deductions include CPP of $1,980, EI of $712, and income tax of $9,474. Employee benefits included CPP of $1,980 and EI of $997.
Instructions
(a) Record the above transactions.
(b) Record any required adjusting entries at January 31.
(c) Prepare the current liabilities section of the statement of financial position at January 31.

Transcribed Image Text:

CPP payable El payable Accounts payable $52,000 Sales tax payable $18,000 3,810 Income tax payable 7,700 Unearned revenue 16,000 1598 Unearned