Joan's Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations: 1. 2. 3. The company ordered golf equipment from suppliers for $547,000, on credit. It paid $ 500.500 to suppliers during the year. The shop has seven employees, who earn gross wages of $ 305,000 for the year. From this, the company deducted 24% for Income taxes, $ 15,100 in CPP premiums, and $4.970 in El premiums before distributing the cheques to the staff. As an employer, Joan was also required to match the employees CPP premiums and pay $ 6,958 in El premiums. Eleven-twelfths of the amounts due to the government (all except the last month) were paid before the end of the year. 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 $ 12,600 on refunds under the warranty 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 $ 24.500 were received for custom orders. None of these orders have been delivered yet. 4. Prepare journal entries to record the transactions. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles Pound answers to decimal places.. 14,674) Prepare journal entries to record the transactions. (Enter debit entries first followed by credit entries. Credit account titles are I automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts. Round answers to decimal places, eg. 14,674) No. Account and explanation Debit Credit 1. (To record purchase of Inventory on account.) (To record payment to supplier.) 2. (To record payment to the staff.) (To record payment to the staff.) | (To record employer's liabilities.) (To record payment to the government.) 3. (To record warranty expense.) (To record warranty payments.) 4. Joan's Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations: 1. 2. 3. The company ordered golf equipment from suppliers for $547,000, on credit. It paid $ 500.500 to suppliers during the year. The shop has seven employees, who earn gross wages of $ 305,000 for the year. From this, the company deducted 24% for Income taxes, $ 15,100 in CPP premiums, and $4.970 in El premiums before distributing the cheques to the staff. As an employer, Joan was also required to match the employees CPP premiums and pay $ 6,958 in El premiums. Eleven-twelfths of the amounts due to the government (all except the last month) were paid before the end of the year. 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 $ 12,600 on refunds under the warranty 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 $ 24.500 were received for custom orders. None of these orders have been delivered yet. 4. Prepare journal entries to record the transactions. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles Pound answers to decimal places.. 14,674) Prepare journal entries to record the transactions. (Enter debit entries first followed by credit entries. Credit account titles are I automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts. Round answers to decimal places, eg. 14,674) No. Account and explanation Debit Credit 1. (To record purchase of Inventory on account.) (To record payment to supplier.) 2. (To record payment to the staff.) (To record payment to the staff.) | (To record employer's liabilities.) (To record payment to the government.) 3. (To record warranty expense.) (To record warranty payments.) 4
