Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I Need it ASAP Please and Thank you! with calculations pls and thank u! it is now late March 2021. Between your university classes and

image text in transcribed

I Need it ASAP Please and Thank you! with calculations pls and thank u!

it is now late March 2021. Between your university classes and other things, you have fallen behind on accounting for the transactions and events affecting Economy Small Engine Repair. You gathered the information necessary to get caught up and sat down to work. Tasks 1. On March 15, 2021, Economy Small Engine Repair purchased a store in the light industrial area north of downtown Regina. To fund the purchase of the new store and related costs, ESER took out a mortgage for $251,500 from the Royal Bank of Canada. The mortgage term is 25 years and the amount borrowed is subject to interest at a rate of 6% per annum or 0.5% per month. Blended principal and interest payments of $1,620 are due each month on the 15th day of the month. To help with the accounting, you decided to prepare a loan amortization schedule for the first 6 payments. You plan to use the format studied in BUS 285 and round all amounts to the nearest dollar. 2. Now that you have prepared the loan amortization schedule, you decided to journalize the April 15 and May 15 mortgage payments. 3. To complete several large repairs in March 2016, Bob found it necessary to hire temporary staff. The gross wages earned by the temporary staff totaled $3,115. From the gross wages, it was necessary to withhold $109 for Canada Pension Plan (CPP), $93 for Employment Insurance (El) and $775 in employee income taxes. ESER was also required to contribute $109 for CPP and $120 for El. The employees will be paid March 31. The deductions will be remitted to the government in mid-April 2021. You decided to prepare the journal entries related to payroll such that they are ready to be entered into the accounting system on March 31. You also decide to get the journal entry for the April 15 payment to the Receiver General ready as well. 4. Due to the volume of sales and the new retail sales ESER is now making, they are required to charge PST and GST on all sales effective April 1, 2021. The Saskatchewan PST rate is 5% of sales and the federal GST rate is also 5% of sales. ESER has agreed to supply two ride-on lawnmowers to the Wascana Centre Authority for use at the University of Regina. They are to be delivered April 1 at a price of$3,500 each and with payment due upon delivery. You need to prepare the journal entry to record the sale including the related PST and GST

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Core Concepts of Accounting

Authors: Cecily A. Raiborn

2nd edition

470499478, 978-0470499474

Students also viewed these Accounting questions