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On February 28, 2021, Coronado Ltd's general ledger contained the following liability accounts: Accounts payable $44,000 CPP payable 3,380 El payable 1,128 Sales tax payable
On February 28, 2021, Coronado Ltd's general ledger contained the following liability accounts: Accounts payable $44,000 CPP payable 3,380 El payable 1,128 Sales tax payable 5,900 Employee income tax payable 5,505 The following selected transactions occurred during the month: Mar. 2 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $12,000. Interest is due at maturity. 3 Sold inventory for cash totalling $40,000, plus 13% HST. The cost of goods sold was $26,000. Coronado uses a perpetual inventory system. 4 Received the property tax bill of $16,000 for the calendar year. It is payable on May 31. (Hint: No accrual has been recorded during the year.) 12 Provided services for customers worth $10,000 plus HST of 13%. The company received payment in full for services and HST. 16 Remitted $10,013 to the government for amounts owing from the February payroll for employee payroll deductions of $7,665 (CPP $1,690, EI $470, and employee income tax $5,505) and for employee benefits of $2,348 (CPP $1,690 and El $658). 27 Paid $24,000 to trade creditors on account. 30 Paid employees for the month. Gross salaries totalled $17,000 and payroll deductions included CPP of $800, El of $259, and employee income tax of $5,900. Employee benefits included CPP of $800 and El of $363. 31 Remitted $5,900 HST pertaining to sales tax collected in February. Record the above transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of goods sold)
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