Credit 21,950 WASCANA LTD. Post-Closing Trial Balance December 31, 2017 Debit Cash $72,000 Accounts receivable 439,000 Allowance for doubtful accounts Inventory 386,000 Equipment 1,800,000 Accumulated depreciation-equipment Accounts payable Interest payable Employee income tax payable CPP payable EI payable Provisions Unearned revenue Bank loan payable Common shares Retained earnings $2,697,000 480,000 295,000 4,000 51,000 30,000 12,000 31,000 12,000 1,200,000 64,000 496,050 $2,697,000 The company had the following transactions during January 2018. When recording these transactions, use the The company had the following transactions during January 2018. When recording these transactions, use the item number listed in lieu of the date and also use that same item number if recording a subsequent adjustment pertaining to that item. 1. The bank loan bears interest at 4% and requires monthly payments on the first day of the month consisting of a fixed principal, payment of $8,000, plus interest, which was properly accrued at the end of 2017. A loan payment was made on January 1, 2018. Accrue interest on the bank loan for the month of January 2018. Early in January 2018, the company paid for a one-year insurance policy on equipment for $24,000. Equipment has a useful life of five years and is depreciated on a double-diminishing-balance basis. All of the payroll-related liabilities were paid off in early January 2018. At the end of January, salaries for that month were paid out. Gross salaries were $220,000 and 6a. amounts withheld from the employees' paycheques included the related employee income tax of $51,000, CPP of $15,000, and El of $4,136. In addition to these amounts, the employer was required to contribute $15,000 to CPP and 6b. $5,790 to El. The salaries were paid but no amounts were remitted to the government regarding the salaries for January. 7. Paid a $8,000 income tax instalment. Sales for the month of January were $673,000 and the cost of the inventory sold was $285,000. The company uses a perpetual inventory system. All sales were on credit. 9. Accounts receivable collected during the month were $792,000. 10. A customer owing the company $14,000 went bankrupt during January. Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts were $28,000 at month end. 12a. Inventory costing $251,000 was purchased in January on credit. 12b. Administrative expenses of $44,000 were incurred on credit. 13. During the month of January, accounts payable amounting to $331,000 were paid. The provisions at December 31, 2017, consisted of estimated damages from a lawsuit. In 14. January, legal counsel felt that an additional $22,000 of damages had become probable that Item Account Titles and Explanation Debit Credit 1. Bank Loan Payable 8000 Interest Payable 5000 Cash 3 Prepaid Insurance 24000 Cash T 24000 5. CPP Payable 30000 EI Payable 12000 Employee Income Tax Payable 51000 Cash 93000 6a. Salaries Expense Employee Income Tax Payable 51000 CPP Payable 15000 Cash 70136 6b. Salaries Expense 20790 CPP Payable 15000 El Payable 5790 7. Income Tax Expense 8000 Cash 8000 8. Accounts Receivable 673000 Sales 673000 (To record sales) Bb. Cost of Goods Sold 285000 Inventory 285000 (To record Cost of Goods Sold) 9. Cash 792000 9. Cash 7920001 Accounts Receivable 792000 10 Allowance for Doubtful Accounts 14000 Accounts Receivable 14000 11. Bad Debts Expense Allowance for Doubtful Accounts 6050 12a. Inventory Accounts Payable 251000 12b. Administrative Expenses 44000 Accounts Payable 44000 13. Accounts Payable 331000 Cash 331000 16. Dividends Declared 4000 16. Dividends Declared 4000 Cash 4000 Adjustments: : Item Account Titles and Explanation Debit Credit 2. Interest Expense Interest Payable 3. Insurance Expense -X Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation - Equipment Debit Credit Item Account Titles and Explanation 2. Interest Expense Interest Payable I 3. Insurance Expense Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation - Equipment 14. Administrative Expenses Provisions 15a. Unearned Revenue Ji Service Revenue 15b. Cost of Goods Sold Accumulated Depreciation - Equipment 14. Administrative Expenses Provisions 150. Unearned Revenue UUUUUUU Service Revenue 15b. Cost of Goods Sold Inventory Attempts: 4 of 15 Prepare T accounts and enter the December 31 balances. Dec. 31 Bal. I Cash 72000 Accounts Receivable by Dec. 31 Bal. VII 439000 Allowance for Doubtful Accounts Il 21950 Dec. 31 Bal. Inventory Dec. 31 Bal. Il 386000 Prepaid Insurance Dec. 31 Bal, I C T Equipment Dec. 31 Bal. Il 1800000 Accumulated Depreciation - Equipment Dec. 31 Bal. Il 480000 Accounts Payable 9H 295000 Dec. 31 Bal. Interest Payable Dec. 31 Bal. 4000 re Employee Income Tax Payable ults by tive IT 51000 Dec. 31 Bal. CPP Payable 30000 12000 12000 IT Dec. 31 Bal. I EI Payable Dec. 31 Bal. Dec. 31 Bal. Provisions | Dec. 31 Bal. Dec. 31 Bal. Unearned Revenue Dec. 31 Bal. 1 31000 31000 12000 Dec. 31 Bal. 120001 Bank Loan Payable 19H 1200000 Dec. 31 Bal. Common Shares Dec. 31 Bal. 64000 ults by tive Retained Earnings Dec. 31 Bal. 496050 Credit 21,950 WASCANA LTD. Post-Closing Trial Balance December 31, 2017 Debit Cash $72,000 Accounts receivable 439,000 Allowance for doubtful accounts Inventory 386,000 Equipment 1,800,000 Accumulated depreciation-equipment Accounts payable Interest payable Employee income tax payable CPP payable EI payable Provisions Unearned revenue Bank loan payable Common shares Retained earnings $2,697,000 480,000 295,000 4,000 51,000 30,000 12,000 31,000 12,000 1,200,000 64,000 496,050 $2,697,000 The company had the following transactions during January 2018. When recording these transactions, use the The company had the following transactions during January 2018. When recording these transactions, use the item number listed in lieu of the date and also use that same item number if recording a subsequent adjustment pertaining to that item. 1. The bank loan bears interest at 4% and requires monthly payments on the first day of the month consisting of a fixed principal, payment of $8,000, plus interest, which was properly accrued at the end of 2017. A loan payment was made on January 1, 2018. Accrue interest on the bank loan for the month of January 2018. Early in January 2018, the company paid for a one-year insurance policy on equipment for $24,000. Equipment has a useful life of five years and is depreciated on a double-diminishing-balance basis. All of the payroll-related liabilities were paid off in early January 2018. At the end of January, salaries for that month were paid out. Gross salaries were $220,000 and 6a. amounts withheld from the employees' paycheques included the related employee income tax of $51,000, CPP of $15,000, and El of $4,136. In addition to these amounts, the employer was required to contribute $15,000 to CPP and 6b. $5,790 to El. The salaries were paid but no amounts were remitted to the government regarding the salaries for January. 7. Paid a $8,000 income tax instalment. Sales for the month of January were $673,000 and the cost of the inventory sold was $285,000. The company uses a perpetual inventory system. All sales were on credit. 9. Accounts receivable collected during the month were $792,000. 10. A customer owing the company $14,000 went bankrupt during January. Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that doubtful accounts were $28,000 at month end. 12a. Inventory costing $251,000 was purchased in January on credit. 12b. Administrative expenses of $44,000 were incurred on credit. 13. During the month of January, accounts payable amounting to $331,000 were paid. The provisions at December 31, 2017, consisted of estimated damages from a lawsuit. In 14. January, legal counsel felt that an additional $22,000 of damages had become probable that Item Account Titles and Explanation Debit Credit 1. Bank Loan Payable 8000 Interest Payable 5000 Cash 3 Prepaid Insurance 24000 Cash T 24000 5. CPP Payable 30000 EI Payable 12000 Employee Income Tax Payable 51000 Cash 93000 6a. Salaries Expense Employee Income Tax Payable 51000 CPP Payable 15000 Cash 70136 6b. Salaries Expense 20790 CPP Payable 15000 El Payable 5790 7. Income Tax Expense 8000 Cash 8000 8. Accounts Receivable 673000 Sales 673000 (To record sales) Bb. Cost of Goods Sold 285000 Inventory 285000 (To record Cost of Goods Sold) 9. Cash 792000 9. Cash 7920001 Accounts Receivable 792000 10 Allowance for Doubtful Accounts 14000 Accounts Receivable 14000 11. Bad Debts Expense Allowance for Doubtful Accounts 6050 12a. Inventory Accounts Payable 251000 12b. Administrative Expenses 44000 Accounts Payable 44000 13. Accounts Payable 331000 Cash 331000 16. Dividends Declared 4000 16. Dividends Declared 4000 Cash 4000 Adjustments: : Item Account Titles and Explanation Debit Credit 2. Interest Expense Interest Payable 3. Insurance Expense -X Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation - Equipment Debit Credit Item Account Titles and Explanation 2. Interest Expense Interest Payable I 3. Insurance Expense Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation - Equipment 14. Administrative Expenses Provisions 15a. Unearned Revenue Ji Service Revenue 15b. Cost of Goods Sold Accumulated Depreciation - Equipment 14. Administrative Expenses Provisions 150. Unearned Revenue UUUUUUU Service Revenue 15b. Cost of Goods Sold Inventory Attempts: 4 of 15 Prepare T accounts and enter the December 31 balances. Dec. 31 Bal. I Cash 72000 Accounts Receivable by Dec. 31 Bal. VII 439000 Allowance for Doubtful Accounts Il 21950 Dec. 31 Bal. Inventory Dec. 31 Bal. Il 386000 Prepaid Insurance Dec. 31 Bal, I C T Equipment Dec. 31 Bal. Il 1800000 Accumulated Depreciation - Equipment Dec. 31 Bal. Il 480000 Accounts Payable 9H 295000 Dec. 31 Bal. Interest Payable Dec. 31 Bal. 4000 re Employee Income Tax Payable ults by tive IT 51000 Dec. 31 Bal. CPP Payable 30000 12000 12000 IT Dec. 31 Bal. I EI Payable Dec. 31 Bal. Dec. 31 Bal. Provisions | Dec. 31 Bal. Dec. 31 Bal. Unearned Revenue Dec. 31 Bal. 1 31000 31000 12000 Dec. 31 Bal. 120001 Bank Loan Payable 19H 1200000 Dec. 31 Bal. Common Shares Dec. 31 Bal. 64000 ults by tive Retained Earnings Dec. 31 Bal. 496050