Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lyrtricks Ltd, which has a December 31 year end, had the following transactions in December 2020 and January 2021 a 2020 Dec 1 Dec. 31

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Lyrtricks Ltd, which has a December 31 year end, had the following transactions in December 2020 and January 2021 a 2020 Dec 1 Dec. 31 The company borrowed $135.000 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 ex per annum Recorded employee wages for December. The wages earned by employees amounted to $9,300, and the company withheld CPP of $536, El of $452, and income taxes of $2.000. Lyrtricks employer contributions were $536 for CPP and $633 for EL Recorded the adjusting entry to record the interest incurred on the bank loan during December Recorded the entry to reclassify the current portion of the bank loan, Dec. 31 Dec. 31 2021 Jan. 2 Paid the wages recorded on December 31, Made the remittance to the government related to the December 31 payroll Jan. 15 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 for the amounts.) nato Acetint and avaianation Debit Credit Prepare all necevjournal entries related to the above traction der det entries in followed by Credit Credit account bitte automatically indented when the amount is entered. Do not indent manually no entry is required lect"No entry for the account tities and enter for the amounts: Debit Date Account and explanation 2000 Credit Dec. 1 Dec 31 (To record wages payable) (To record wages payable) (To record employer's liabities) Dec 31 (To record interest.) (To record reclassification of current portion of bank ban.) 2021 (To record reclassification of current portion of bank loan.) 2021 Jan, 2 Jan. 15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Accounting For Nonfinancial Managers

Authors: Steven A. Finkler

5th Edition

9780808046905

More Books

Students also viewed these Accounting questions

Question

Describe the reasons why clinical psychologists perform research.

Answered: 1 week ago

Question

LO6 Define harassment and the role that HR plays in addressing it.

Answered: 1 week ago