On January 1, 2021, Blossom Software Company's general ledger contained these liability accounts: In January, the following selected transactions occurred: Jan. 2 Issued a $55,500, four-month, 8% note. Interest is payable at maturity. 5 Sold merchandise for $11,000 cash, plus 13% HST. The cost of this sale was $5,900. Blossom Software uses a perpetual inventory system. 12 Provided services for customers who had paid $13,200 cash in advance. The payment included HST of \$1,519. 14 Paid the Receiver General (federal government) for sales taxes collected in December 2020. 15 Paid the Receiver General for amounts owing from the December payroll for CPP, EI, and income tax. 17 Paid $16,000 to creditors on account. 20 Sold 3,900 units of a new product on account for $63 per unit, plus 13%HST. This new product has a one-year warranty. It is estimated that 8% of the units sold will be returned for repair at an average cost of $10 per unit. The cost of this sale was $31 per unit. 29 During the month, provided $2,900 of services for customers who redeemed their customer loyalty rewards. Assume that HST of $325 is included in the $2,900. 31 Issued 32,500 loyalty rewards points worth $1 each. Based on past experience, 20% of these points are expected to be redeemed. Cash sales related to the issuance of the loyalty points were $260,200. 31 Recorded and paid the monthly payroll. Gross salaries were $23,350. Amounts withheld included CPP of $764, El of $403, and income tax of $3,585. \begin{tabular}{l|l|l|} Date Account Titles and Explanation & Acon & Debit \\ \hline an. 2 & Cash & 55,500 \\ \hline \end{tabular} Notes Payable (Borrowed cash and signed a note.) Cash HST Payable Sales (To record cash sales plus HST.) Cost of Goods Sold Merchandise Inventory 12,430 Credit 55,500 (To record cost of goods sold.) Unearned Revenue 1,430 Service Revenue HST Payable (To record service revenue for cash previously received.) HST Payable Cash 11,000 (Remitted HST payable.) Jan. 15 CPP Payable 5,900 5,900 Accounts Payable Cash (Payment on account.) Accounts Receivable Sales HST Payable (To record sales on account plus HST.) Cost of Goods Sold 120,900 Merchandise Inventory (To record cost of goods sold.) Unearned Revenue-Loyalty Program 2,900 Revenue from Rewards Program HST Payable (To record redemption of rewards plus HST.) Cash 260,200 Sales Unearned Revenue-Loyalty Program (To record sales and unearned revenue related to loyalty program.) Salaries Expense Salaries Payable CPP Payable El Payable Income Tax Payable (To record salaries expense.) (To record salaries expense.) (To record payment of salaries payable.) 1. Interest on the note payable 2. The estimated warranty liability 3. Employee benefits for CPP, El, and vacation pay (accrued at a rate of 4%) 4. Estimated property taxes of $9,540 for the 2021 calendar year '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. Round answers to 0 decimal places, e.g. 5,276.) (1) . ( 2 ) . (3) (4) . BLOSSOM SOFTWARE COMPANY (Partial) Balance Sheet January 31, 2021 Accounts Payable $36000 Unearned Revenue-Loyalty Program 14992 CPP Payable \begin{tabular}{|l|} \hline 2204 \\ \hline \end{tabular} El Payable \begin{tabular}{|l||} \hline 1379 \\ \hline \hline \end{tabular} Vacation Pay Payable \begin{tabular}{|l|} \hline 934 \\ \hline \end{tabular} HST Payable Income Tax Payable 3585 Unearned Revenue 5900 Interest Payable 370 Notes Payable 55500 Property Tax Payable 795 Warranty Liability Total Current Liabilities
