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Just need help with interest expense (number 5 from the first picture) to figure out the journal enteries. Chen Wholesalers Ltd. incurred the following transactions
Just need help with interest expense (number 5 from the first picture) to figure out the journal enteries.
Chen Wholesalers Ltd. incurred the following transactions related to current liabilities: 1. Chen's cash register showed the following totals at the end of the day on March 17: pre-tax sales $ 52,000; GST $2,600; and PST $3,640 2. Chen received its property tax bill for the calendar year for $ 55,800 on May 1, payable July 1 3. Chen's gross payroll for the week of August 15 was $84,700. The company deducted $3,670 for CPP,$1,592 for El, $5,700 for pension, and $15,890 for income tax from the employees' pay. The employer portions of CPP and El for the week were$ 3,670 and $2,229 respectively On August 22, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll in transaction 3 above were paid. 4 5. On October 1, Chen borrowed $ 110,000 from First Bank for a six-month period; 4% interest on the bank loan is payable on April 1Step by Step Solution
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