1.

Real People Sporting (RPS) Co-op introduced a loyalty program in 2020. Every customer who signed up would receive 3% of their total purchases as a cheque, each February for the previous year, that could be used in-store on any merchandise within the next nine months. Customers could look online during the year and check their balance at any time. Laura signed up for the program in 2020, when she purchased a kayak in July for $800. Later, in September, she purchased a mountain bike for $1,600. In March 2021, she purchased a paddle board for $1,400 and used her cheque toward the purchase. Required: a. Prepare the journal entries for RPS Co-op for each of the transactions in July 2020, September 2020, and March 2021.

b. In 2020 RPS Co-op had a total of $426,000 in sales to customers who had signed up with the loyalty program. What is the amount of liability that would be created by these sales? (Round the final answer to the nearest whole dollar amount.)

Question-2

Designer Architects had the following additional information at its November 30, 2020, year-end:

1. The Unearned Revenue account showed a balance of $72,000, which represented four months of services paid in advance by a client for services beginning on October 15, 2020.
2. The payroll register showed the following unpaid amounts as at November 30:

   EI* Premium	Income Taxes*	CPP*	Total Deductions	Net Payable	Office Salaries	Sales Salaries
   180.41**	1,390.00	283.98**	1,854.39	4,445.61	3,500.00	2,800.00

   *These values are based on assumed payroll deductions. **The employer's portions of EI and CPP are 1.4 times and 1 times the employees' portion, respectively.
3. The November utility bill in the amount of $3,160 was unpaid and unrecorded at November 30.

Required: Prepare the appropriate entries at year-end based on the above information: (Round the final answers to 2 decimal places.)

Analysis Component: If the above entries are not recorded on November 30, 2020, what is the effect on the income statement and the balance sheet? (Enter all value as positive values. Round intermediate and the final answers to 2 decimal places. Select "No effect" in case of no effect on Income statement and Balance sheet.)