liabi$1.$ Centrum Advertising services, a Toronto business has a December $31$ year end and prepares a

financial statement annually. Centrum gathered the following information to prepare the current

liability section of its December $31,2014$ balance sheet. Determine what will be included in the

current liabilities section. Compute the liabilities in each case: $[12$ marks$]$

a$.$ Centrum borrowed $$84000$ on January $22014$ payments are made annually for $5$ years each

January $2.$ What are the liabilities for $2016?$

Year Annual

Payment

$

Principal

proportion of

payment $

Interest portion

of payment

$

Principal

Balance at

year end

$

$2015$

$2016$

$2017$

$2018$

$11395$

$11395$

$11395$

$11395$

$8515$

$9026$

$9567$

$10142$

$2880$

$2369$

$1828$

$1253$

$39485$

$30459$

$20892$

$10750$

$201911395107506450$

b$.$ Property taxes of $$8750$ were unpaid and unrecorded at December $31,2014$

c$.$ The Payroll register showed the following total unpaid amounts as at December $2014$

Gross

Pay

EI

Premium

Income

Taxes

United

way

CPP Total

deductions

Net

pay

Office

salaries

Sale

salaries

$7850175\mathrm{.}643196\mathrm{.}75320384\mathrm{.}754065\mathrm{.}643774\mathrm{.}361900\mathrm{.}00940\mathrm{.}00$

d$.$ The company provided services to clients totalling to $$188000$ including PST and GST in the

month of December

e$.$ The unadjusted trial balance showed unearned service revenue of $ $7600.$ $$5000$ of this amount

has been earned by December $31$lities