Question
Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021: 2020 Dec. 1 The company borrowed
Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021:
2020 | ||
Dec. 1 | The company borrowed $190,000 from a bank on a five-year loan payable. The terms of the loan stipulate that Lyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bears interest at 9% per annum. | |
Dec. 31 | Recorded employee wages for December. The wages earned by employees amounted to $10,100, and the company withheld CPP of $582, EI of $491, and income taxes of $1,700. Lyrtricks employer contributions were $582 for CPP and $687 for EI. | |
Dec. 31 | Recorded the adjusting entry to record the interest incurred on the bank loan during December. | |
Dec. 31 | Recorded the entry to reclassify the current portion of the bank loan. | |
2021 | ||
Jan. 2 | Paid the wages recorded on December 31. | |
Jan. 15 | Made the remittance to the government related to the December 31 payroll. |
Prepare all necessary journal entries related to the above 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 and enter 0 for the amounts.)
Date | Account and explanation | Debit | Credit |
---|---|---|---|
2020 | |||
Dec. 1 | Enter an account title for the journal entry on December 1. | Enter a debit amount. | Enter a credit amount. |
Enter an account title for the journal entry on December 1. | Enter a debit amount. | Enter a credit amount. | |
Dec. 31 | Enter an account title to record wages payable on December 31. | Enter a debit amount. | Enter a credit amount. |
Enter an account title to record wages payable on December 31. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title to record wages payable on December 31. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title to record wages payable on December 31. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title to record wages payable on December 31. | Enter a debit amount. | Enter a credit amount. | |
(To record wages payable.) | |||
Enter an account title to record employer's liabilities on December 31. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title to record employer's liabilities on December 31. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title to record employer's liabilities on December 31. | Enter a debit amount. | Enter a credit amount. | |
(To record employer's liabilities.) | |||
Dec. 31 | Enter an account title to record interest on December 31. | Enter a debit amount. | Enter a credit amount. |
Enter an account title to record interest on December 31. | Enter a debit amount. | Enter a credit amount. | |
(To record interest.) | |||
Enter an account title to record reclassification of current portion of bank loan on December 31. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title to record reclassification of current portion of bank loan on December 31. | Enter a debit amount. | Enter a credit amount. | |
(To record reclassification of current portion of bank loan.) | |||
2021 | |||
Jan. 2 | Enter an account title for the journal entry on January 2. | Enter a debit amount. | Enter a credit amount. |
Enter an account title for the journal entry on January 2. | Enter a debit amount. | Enter a credit amount. | |
Jan. 15 | Enter an account title for the journal entry on January 15. | Enter a debit amount. | Enter a credit amount. |
Enter an account title for the journal entry on January 15. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title for the journal entry on January 15. | Enter a debit amount. | Enter a credit amount. | |
Enter an account title for the journal entry on January 15. | Enter a debit amount. | Enter a credit amount. |
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