Assignment #10 The general ledger of Sunrise Ltd.'s shows the following selected liability accounts on December 1, 2019: Accounts payable $42,500 CPP payable $1,980 El payable $902 Sales tax payable $6,224 Employee income tax payable 57,337 Unearned revenue $25,990 Sunrise Security Equipment and Services Ltd.'s business year ends on December 31. The company is using a perpetual inventory system. The following transactions occurred during the month of December: Date Description Dec, 1 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $10,000. Interest is due at maturity. Purchased inventory on account at a cost of $28.000. plus 13% HST. Sold inventory for cash totalling $32,000, plus 13 % HST. The cost of goods sold was $14,000. 10 Paid for inventory purchased on Dec. 6 Provided service for customers who had made advance payments of $19,775 including HST, which is not payable until the related service occurs (Note: the actual sale occurs when the service is provided: i.e.: nowl) 15 Paid $6,224 HST to the Receiver General for sales tax collected in November Paid $10.219 to the Receiver General for the amount owing from the November payroll for employee payroll deduction of $8,703 (CPP $990, EI $376, and employee income tax $7,337) and for employee benefits of $1,516 (CPP $990 and El $526). Signed a contract to provide security services to a small apartment complex, starting in January 2020, and collected six months' fees in advance, amounting to $40,680 including HST, which is not payable until the related service occurs. 26 Paid $23,000 to supplier for inventory bought last month. 30 Calculated the payroll, which results in gross salaries of $22,000, payroll deductions for CPP $1,089 and El $413, payroll deductions for employee income tax $8,071, employer benefits for CPP (matching) and El $578. Employees are paid in cash, but payments for the corresponding payroll deductions have not yet been made. Additional information The company received the property tax bill of $12,000 for the calendar year on March 31, 2019 and paid it on May 31. On the date the bill arrived, the bookkeeper recorded the property tax expense for the first three months. On the date the bill was paid, additional two months were recorded as expense. The remaining payment was recorded as Prepaid Property Tax. No further adjustments have been made since Instructions 15 17 20 put une actual sale occurs when the service is provided: i.e.: nowi) Paid $6,224 HST to the Receiver General for sales tax collected in November. Paid $10,219 to the Receiver General for the amount owing from the November payroll for employee payroll deduction of $8,703 (CPP $990, EI $376, and employee income tax $7,337) and for employee benefits of $1,516 (CPP $990 and El $526). Signed a contract to provide security services to a small apartment complex, starting in January 2020, and collected six months' fees in advance, amounting to $40,680 including HST, which is not payable until the related service occurs. Paid $23,000 to supplier for inventory bought last month. Calculated the payroll, which results in gross salaries of $22,000, payroll deductions for CPP $1.089 and El $413, payroll deductions for employee income tax $8,071, employer benefits for CPP (matching) and El $578. Employees are paid in cash, but payments for the corresponding payroll deductions have not yet been made. 26 30 Additional information The company received the property tax bill of $12,000 for the calendar year on March 31, 2019 and paid it on May 31. On the date the bill arrived, the bookkeeper recorded the property tax expense for the first three months. On the date the bill was paid, additional two months were recorded as expense. The remaining payment was recorded as Prepaid Property Tax. No further adjustments have been made since. Instructions a) Record the above transactions b) Record any required adjusting entries at December 31, 2019. In addition, record the adjustments for the property tax expense (see additional information). c) Prepare the current liabilities section of the statement of financial position at December 31, 2019. Assignment #10 The general ledger of Sunrise Ltd.'s shows the following selected liability accounts on December 1, 2019: Accounts payable $42.500 Dec 1: The note has been issued by the CPP payable $1,980 Remember, the company to clear their outstanding El payable $902 A/P. The company owes the money interest rate is an Sales tax payable $6,224 they have to pay the interest annual interest rate Employee income tax payable $7,337 Note: Only the interest relevant to 2019 Unearned revenue $25.990 has to be considered in the adjustment Sunrise Security Equipment and Services Ltd.'s business year ends on December 31. The company is using a perpetual inventory system. The following transactions occurred during the month of December Date Description Dec, 1 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $10.000. Interest is due at maturity. Purchased inventory on account at a cost of $28,000, plus 13% HST. 8 Sold inventory for cash totalling $32,000, plus 13 % HST. The cost of goods sold was $14,000 10 Paid for inventory purchased on Dec. 6 Provided service for customers who had made advance payments of $19,775 including HST which is not payable until the related service occurs (Note: the actual sale occurs when the service is provided: Le: now!) Paid $6.224 HST to the Receiver General for sales tax collected in November Paid $10,219 to the Receiver General for the amount owing from the November payroll for employee payroll deduction of $8,703 (CPP $990, EI $376, and employee income tax $7,337) and for employee benefits of $1,516 CPP $990 and El $526). 20 Signed a contract to provide security Services to a small apartment complex, starting in January 2020, and collected six months' fees in advance, amounting to $40,680 including HST, which is not payable until the related service occurs. Paid $23,000 to supplier for inventory bought last month. Calculated the payroll, which results in gross salaries of $22,000, payroll deductions for CPP $1,089 and El $413, payroll deductions for employee income tax 58.071, employer benefits for CPP (matching) and El $578. Employees are paid in cash, but payments for the corresponding payroll deductions have not yet been made. Additional information The company received the property tax bill of $12,000 for the calendar year on March 31, 2019 and paid it on May 31 On the date the bill arrived, the bookkeeper recorded the property tax expense for the first three months. On the date the bill was paid, additional two months were recorded as expense. The remaining payment was recorded as Prepaid Property Tax. No further adjustments have been made since 6 8 10 14 15 17 Purchased inventory on account at a cost of $28,000, plus 13% HST. Sold inventory for cash totalling $32,000, plus 13 % HST. The cost of goods sold was $14,000. Pald for Inventory purchased on Dec. 6 Provided service for customers who had made advance payments of $19,775 Including HST, which is not payable until the related service occurs (Note: the actual sale occurs when the service is provided: i.e.: now!) Paid $6,224 HST to the Receiver General for sales tax collected in November. Paid $10,219 to the Receiver General for the amount owing from the November payroll for employee payroll deduction of $8,703 (CPP $990, EI $376, and employee income tax $7,337) and for employee benefits of $1,516 (CPP $990 and El $526). Signed a contract to provide security services to a small apartment complex, starting in January 2020, and collected six months' fees in advance, amounting to $40,680 including HST, which is not payable until the related service occurs. Paid $23,000 to supplier for inventory bought last month. Calculated the payroll, which results in gross salaries of $22,000, payroll deductions for CPP $1,089 and El $413, payroll deductions for employee income tax $8,071, employer benefits for CPP (matching) and El $578. Employees are paid in cash, but payments for the corresponding payroll deductions have not yet been made. 20 26 30 Additional information The company received the property tax bill of $12,000 for the calendar year on March 31, 2019 and paid it on May 31. On the date the bill arrived, the bookkeeper recorded the property tax expense for the first three months. On the date the bill was paid, additional two months were recorded as expense. The remaining payment was recorded as Prepaid Property Tax. No further adjustments have been made since. Instructions a) Record the above transactions b) Record any required adjusting entries at December 31, 2019. In addition, record the adjustments for the property tax expense (see additional information). C) Prepare the current liabilities section of the statement of financial position at December 31, 2019 The total amount including tax has been collected and has been recorded as unearned revenue. On Dec. 14 the service has been provided, so the unearned revenue needs to be adjusted. In this adjusting journal entry (where you consider the service revenue) you need to consider HST. Assignment #10 The general ledger of Sunrise Ltd.'s shows the following selected liability accounts on December 1, 2019: Accounts payable $42,500 CPP payable $1,980 El payable $902 Sales tax payable $6,224 Employee income tax payable $7,337 Unearned revenue $25,990 Sunrise Security Equipment and Services Ltd.'s business year ends on December 31. The company is using a perpetual inventory system. The following transactions occurred during the month of December: Date Dec, 1 6 8 10 15 17 Description Issued a three-month, 6% note payable in exchange for an account payable in the amount of $10,000. Interest is due at maturity. Purchased inventory on account at a cost of $28,000, plus 13% HST. Sold inventory for cash totalling $32,000, plus 13 % HST. The cost of goods sold was $14,000. Paid for inventory purchased on Dec. 6 Provided service for customers who had made advance payments of $19,775 including HST, which is not payable until the related service occurs (Note: the actual sale occurs when the service is provided: i.e.: now!) Paid $6,224 HST to the Receiver General for sales tax collected in November Paid $10,219 to the Receiver General for the amount owing from the November payroll for employee payroll deduction of $8,703 (CPP $990, EI $376, and employee income tax $7,337) and for employee benefits of $1,516 (CPP $990 and El $526). Signed a contract to provide security services to a small apartment complex, starting in January 2020, and collected six months' fees in advance, amounting to $40,680 including HST, which is not payable until the related service occurs. Paid $23,000 to supplier for inventory bought last month. Calculated the payroll, which results in gross salaries of $22,000, payroll deductions for CPP $1,089 and El $413, payroll deductions for employee income tax $8,071, employer benefits for CPP (matching) and El $578. Employees are paid in cash, but payments for the corresponding payroll deductions have not yet been made. 26 Additional information The company received the property tax bill of $12,000 for the calendar year on March 31, 2019 and paid it on May 31. On the date the bill arrived, the bookkeeper recorded the property tax expense for the first three months. On the date the bill was paid, additional two months were recorded as expense. The remaining payment was recorded as Prepaid Property Tax. No further adjustments have been made since. Instructions a) Record the above transactions b) Record any required adjusting entries at December 31, 2019. In addition, record the adjustments for the property tax expense (see additional information). c) Prepare the current liabilities section of the statement of financial position at December 31, 2019. Assignment #10 The general ledger of Sunrise Ltd.'s shows the following selected liability accounts on December 1, 2019: $42,500 Remember, the interest rate is an annual interest rate Accounts payable CPP payable El payable Sales tax payable Employee income tax payable Unearned revenue $1,980 $902 $6,224 Dec. 1: The note has been issued by the company to clear their outstanding A/P. The company owes the money they have to pay the interest. Note: Only the interest relevant to 2019 has to be considered in the adjustment. $7,337 $25,990 Sunrise Security Equipment and Services Ltd.'s business year ends on December 31. The company is using a perpetual inventory system. The following transactions occurred during the month of December: Date Dec, 1 6 10 14 15 17 Description Issued a three-month, 6% note payable in exchange for an account payable in the amount of $10,000. Interest is due at maturity. Purchased inventory on account at a cost of $28,000, plus 13% HST Sold inventory for cash totalling $32,000, plus 13 % HST. The cost of goods sold was $14,000. Paid for inventory purchased on Dec. 6 Provided service for customers who had made advance payments of $19,775 including HST, which is not payable until the related service occurs (Note: the actual sale occurs when the service is provided: i.e.: now!) Paid $6,224 HST to the Receiver General for sales tax collected in November Paid $10,219 to the Receiver General for the amount owing from the November payroll for employee payroll deduction of $8,703 (CPP $990, EI $376, and employee income tax $7,337) and for employee benefits of $1,516 (CPP $990 and El $526). Signed a contract to provide security services to a small apartment complex, starting in January 2020, and collected six months' fees in advance, amounting to $40,680 including HST, which is not payable until the related service occurs. Paid $23,000 to supplier for inventory bought last month. Calculated the payroll, which results in gross salaries of $22,000, payroll deductions for CPP $1,089 and El $413, payroll deductions for employee income tax $8,071, employer benefits for CPP (matching) and El $578. Employees are paid in cash, but payments for the corresponding payroll deductions have not yet been made. 20 26 30 Additional information The company received the property tax bill of $12,000 for the calendar year on March 31, 2019 and paid it on May 31. On the date the bill arrived, the bookkeeper recorded the property tax expense for the first three months. On the date the bill was paid, additional two months were recorded as expense. The remaining payment was recorded as Prepaid Property Tax. No further adjustments have been made since. Instructions a) Record the above transactions b) Record any required adjusting entries at December 31, 2019. In addition, record the adjustments for the property tax expense (see additional information), c) Prepare the current liabilities section of the statement of financial position at December 31, 2019 The total amount including tax has been collected and has been recorded as unearned revenue. On Dec. 14 the service has been provided, so the unearned revenue needs to be adjusted. In this adjusting journal entry (where you consider the service revenue) you need to consider HST