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On January 1, 2021. Cullumber Software Company's general ledger contained these liability accounts: Accounts Payable Unearned Revenue-Loyalty Program CPP Payable El Payable HST Payable Income

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On January 1, 2021. Cullumber Software Company's general ledger contained these liability accounts: Accounts Payable Unearned Revenue-Loyalty Program CPP Payable El Payable HST Payable Income Tax Payable Unearned Revenue Vacation Pay Payable $49.000 3,700 1.210 620 8,330 3,440 12,900 8,470 In January, the following selected transactions occurred: Jan. 2 5 12. 14 15 17 Issued a $37,700, four-month, 6% note. Interest is payable at maturity. Sold merchandise for $13,000 cash, plus 13% HST. The cost of this sale was $3.850. Cullumber Software uses a perpetual inventory system. Provided services for customers who had paid $9.300 cash in advance. The payment included HST of $1,070. Paid the Receiver General (federal government) for sales taxes collected in December 2020. Pald the Receiver Generalfor amounts owing from the December payroll for CPP. EI, and income tax. Paid $14,800 to creditors on account. Sold 7.200 units of a new product on account for $55 per unit, plus 13% HST. This new product has a one-year warranty. It is estimated that 9% of the units sold will be returned for repair at an average cost of $10 per unit. The cost of this sale was $25 per unit. During the month, provided $3.050 of services for customers who redeemed their customer loyalty rewards. Assume that HST of $325 is included in the $3.050. Issued 32.700 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 $249,800. 20 29 31 Record adjusting entries for the following 1 2 3. 4. Interest on the note payable The estimated warranty liability Employee benefits for CPP. EI, and Vacation pay accrued at a rate of 4%) Estimated property taxes of 58.100 for the 2021 calendar year Debit Credit Date (1) Jan 31 Account Titles and Explanation Interest Payable 754 754 (2) Jan 31 6550 Interest Expense (To accrue interest expense.) Warranty Expense Warranty Liability (To accrue warranty expense.) Employee Benefits Expense 6550 (3) Jan 31 10300 CPP Payable 1210 El Payable 620 8470 Vacation Pay Payable (To record employer benefits expense.) Property Tax Payable (4) Jan 31 10300 10300 Property Tax Expense To accrue property tax expense.)

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