Joan's Golf Shop Ltd, had the following transactions involving current liabilities in its first year of operations: 1. The company ordered goif equipment from suppliers for $550,000, on credit. It paid $503,000 to suppliers during the year. 2. The shop has seven employees, who earn gross wages of $311,000 for the year. From this, the company deducted 24% for income taxes, $15,400 in CPP premiums, and $5,070 in El premiums before distributing the cheques to the staft. As an employer, Joan was also required to match the employees CPP premiums and pay $7,098 in El premiums. Eleven-twelfthis of the amounts due to the government (all except the last month) were paid before the end of the year. 3. The company gives customers a one-year warranty against defects on golf clubs. Management estimated that warranty costs would total 2% of sales. Sales of golf clubs for the year were $1,200,000. During the year, the company spent $12,900 on refunds under the warranty. 4. Some customers order very expensive, custom-made golf clubs. In these cases, the company requires them to pay a deposit of 50% of the selling price when the order is placed. During the year, deposits totalling $21,000 were received for custom orders. None of these orders have been delivered yet. Prepare journal entries to record the tranicctions (Enter debit entries fint folowed by ovedit enctirh Credi' occecut tibln are and enter 0 for the amounts flound answers fo 0 decimal ploces es. 14.674. Joan's Golf Shop Ltd, had the following transactions involving current liabilities in its first year of operations: 1. The company ordered goif equipment from suppliers for $550,000, on credit. It paid $503,000 to suppliers during the year. 2. The shop has seven employees, who earn gross wages of $311,000 for the year. From this, the company deducted 24% for income taxes, $15,400 in CPP premiums, and $5,070 in El premiums before distributing the cheques to the staft. As an employer, Joan was also required to match the employees CPP premiums and pay $7,098 in El premiums. Eleven-twelfthis of the amounts due to the government (all except the last month) were paid before the end of the year. 3. The company gives customers a one-year warranty against defects on golf clubs. Management estimated that warranty costs would total 2% of sales. Sales of golf clubs for the year were $1,200,000. During the year, the company spent $12,900 on refunds under the warranty. 4. Some customers order very expensive, custom-made golf clubs. In these cases, the company requires them to pay a deposit of 50% of the selling price when the order is placed. During the year, deposits totalling $21,000 were received for custom orders. None of these orders have been delivered yet. Prepare journal entries to record the tranicctions (Enter debit entries fint folowed by ovedit enctirh Credi' occecut tibln are and enter 0 for the amounts flound answers fo 0 decimal ploces es. 14.674
