On January 1, 2021, Crane Software Companys general ledger contained these liability accounts Accounts Payable $53,000 Unearned RevenueLoyalty Program 5,600 CPP Payable 1,450 EI Payable 800 HST Payable 9,530 Income Tax Payable 4,160 Unearned Revenue 18,500 Vacation Pay Payable 9,130 In January, the following selected transactions occurred Jan 2 Issued a $54,000, four month, 7 note Interest is payable at maturity 5 Sold merchandise for $11,100 cash, plus 13 HST The cost of this sale was $6,050 Crane Software uses a perpetual inventory system 12 Provided services for customers who had paid $12,900 cash in advance The payment included HST of $1,484 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 $16,100 to creditors on account 20 Sold 4,160 units of a new product on account for $60 per unit, plus 13 HST This new product has a one year warranty It is estimated that 7 of the units sold will be returned for repair at an average cost of $10 per unit The cost of this sale was $29 per unit 29 During the month, provided $2,800 of services for customers who redeemed their customer loyalty rewards Assume that HST of $275 is included in the $2,800 31 Issued 32,300 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 $259,400 31 Recorded and paid the monthly payroll Gross salaries were $23,150 Amounts withheld included CPP of $749, EI of $399, and income tax of $3,579 Record adjusting entries for the following 1 2 Interest on the note payable The estimated warranty liability Employee benefits for CPP, El, and vacation pay (accrued at a rate of 4 ) Estimated property taxes of $9,720 for the 2021 calendar year 3 4 (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 Round answers to decimal places, eg 5,276 ) Date Account Titles and Explanation Debit Credit (1) Jan 31 (To accrue interest expense ) (2) Jan 31 (To accrue warranty expense ) (3) Jan 31 (To record employer benefits expense ) (4) Jan 31 (To accrue property tax expense )

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Posted on Aug 14, 2024

On January 1, 2021, Crane Software Companys general ledger contained these liability accounts: Accounts Payable $53,000 Unearned RevenueLoyalty Program 5,600 CPP Payable 1,450 EI Payable

On January 1, 2021, Crane Software Companys general ledger contained these liability accounts:

Accounts Payable		$53,000
Unearned RevenueLoyalty Program		5,600
CPP Payable		1,450
EI Payable		800
HST Payable		9,530
Income Tax Payable		4,160
Unearned Revenue		18,500
Vacation Pay Payable		9,130

In January, the following selected transactions occurred:

Jan. 2		Issued a $54,000, four-month, 7% note. Interest is payable at maturity.
5		Sold merchandise for $11,100 cash, plus 13% HST. The cost of this sale was $6,050. Crane Software uses a perpetual inventory system.
12		Provided services for customers who had paid $12,900 cash in advance. The payment included HST of $1,484.
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 $16,100 to creditors on account.
20		Sold 4,160 units of a new product on account for $60 per unit, plus 13% HST. This new product has a one-year warranty. It is estimated that 7% of the units sold will be returned for repair at an average cost of $10 per unit. The cost of this sale was $29 per unit.
29		During the month, provided $2,800 of services for customers who redeemed their customer loyalty rewards. Assume that HST of $275 is included in the $2,800.
31		Issued 32,300 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 $259,400.
31		Recorded and paid the monthly payroll. Gross salaries were $23,150. Amounts withheld included CPP of $749, EI of $399, and income tax of $3,579.

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Record adjusting entries for the following: 1. 2. Interest on the note payable The estimated warranty liability Employee benefits for CPP, El, and vacation pay (accrued at a rate of 4%) Estimated property taxes of $9,720 for the 2021 calendar year 3. 4. (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. Round answers to decimal places, eg. 5,276.) Date Account Titles and Explanation Debit Credit (1) Jan 31 (To accrue interest expense.) (2) Jan. 31 (To accrue warranty expense.) (3) Jan. 31 (To record employer benefits expense.) (4) Jan. 31 (To accrue property tax expense.)