1. An employer has calculated the following amounts for an employee during the last two weeks of November:

Gross wages $2,206

Income taxes withheld $655

Canada Pension Plan contributions $190

Employment Insurance contributions $58

Workers Compensation (WSIB) $14

1. Calculate the employees net pay.
2. Calculate the total expenses relating to this employee for the employer.

2. On Oct. 1, 2019, Davis Company paid Ace Properties Management $93,206 cash to rent office space for one quarter. Davis uses a monthly accounting period, so it will adjust the prepaid rent at the end of each month. Create all of the journal entries that pertain to Davis renting the office space from October 1, 2019, up to and including December 31, 2019.

3. The following information pertains to ACME Kitchen Company (ACME) for the month of January 2020.

Jan. 1 ACME purchased merchandise for $69,000 on credit from its supplier,

Starling Supplies, with terms of 2/15, n/45.

Jan. 1 - ACME paid $6 cash to have the merchandise from Starling Supplies

delivered.

Jan. 4 ACME sold merchandise on credit to its customer, Tasty Restaurant, for

$36,206, with terms of 1/10, n/30; cost of goods sold was $18,000.

Jan. 4 ACME paid $10 cash to ship the goods to Tasty Restaurant.

Jan. 7 Tasty Restaurant returned half of the merchandise purchased on Jan. 4.

There was nothing wrong with the merchandise and it will be resold by ACME to other customers in the future.

Jan. 8 ACME returned $9,000 of the merchandise that it purchased on Jan. 1

from Starling Supplies because it was damaged.

Jan. 13 ACME paid Starling Supplies what it owed for merchandise that it

purchased on Jan. 1.

Jan. 14 ACME received payment from Tasty Restaurant for what it was owed

from the Jan. 4 sale.

Journalize the above transactions.

4. Malik Enterprises has completed all of its journal entries and adjusting entries for the end of the month of September, 2019. The adjusted trial balance is shown below.

(10 Marks)

Account Titles	DR	CR
Cash	$21,700
Accounts Receivable	$30,100
Prepaid Insurance	$6,300
Equipment	$235,000
Accumulated Depreciation		$41,750
Accounts Payable		$17,900
Interest Payable		$375
Unearned Revenue		$5,800
Bank Loan		$73,000
Malik, Beginning Capital		$165,000
Malik, Drawings	$2,400
Service Revenue		Service Revenue
Salaries Expense	$24,360
Rent Expense	$8,700
Depreciation Expense	$3,264
Insurance Expense	$3,206
Interest Expense	$400
Supplies Expense	$1,500

1. Calculate the Service Revenue.
2. Create the closing journal entries

5. Malik Enterprises has completed all of its journal entries and adjusting entries for the month of March, 2020. The adjusted trial balance is shown below.

Malik Enterprises
Adjusted Trial Balance
March 31, 2020
Account Titles	DR	CR
Cash	$21,700
Accounts Receivable	$30,100
Prepaid Insurance	$6,300
Equipment	$235,000
Accumulated Depreciation		$41,750
Accounts Payable		$17,900
Interest Payable		$375
Unearned Revenue		$5,800
Bank Loan		$73,000
Malik, Beginning Capital		$165,000
Malik, Drawings	$2,400
Service Revenue		Service Revenue
Salaries Expense	$24,360
Rent Expense	$8,700
Depreciation Expense	$3,264
Insurance Expense	$3,206
Interest Expense	$400
Supplies Expense	$1,500

Prepare the Income Statement, the Statement of Owners Equity, and the Classified Balance Sheet from the Adjusted Trial Balance. Make sure you include the 3-line title for each of the three statements.