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Gargoyle Ltd . , which has a December 3 1 year end had the following transactions in December 2 0 2 4 andJanuary 2 0
Gargoyle Ltd which has a December year end had the following transactions in December andJanuary :
Dec st: Paid the first installment on a $ bank loan. The terms of the loan stipulate that Gargoylemust repay of the principal every December st plus the accrued interest to that date. The loan bearsinterest at per annum and has been outstanding for months.
Dec st: Recorded the Garbucks granted to customers as part of a loyalty program to be used onfuture purchases. The Garbucks were granted on eligible purchases of $ Management expectsthat of the Garbucks awarded to customers will never be redeemed.
Dec st: Recorded employee wages for the last two days in December following the last pay day inDecember. The wages earned by employees amounted to $ per day and the company recordedCPP of $ EI of $ and income taxes of $ Gargoyles employer contributions were $ forCPP and $ for EI
Dec st: Recorded the adjusting entry to record the interest incurred on the bank loan duringDecember.
Dec st: Recorded the entry to reclassify the current portion of the bank loan.
Jan nd: Paid the wages recorded on December
Jan th: A customer used the loyalty program to make a purchase of $ The cost of goods sold tothe customer amounted to $
Jan th: Made the remittances to the Receiver General related to the December st payroll.
Required:a Prepare the necessary journal entries related to the above transactions
b Present the Liability section of Gargoyle's Balance Sheet.
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