On January 1, 2021, Sunland 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 $52,600 4,700 1,330 710 9,530 3,800 14,900 8.950 In January, the following selected transactions occurred: Jan. 2 Issued a $45,000, four-month, 8% note. Interest is payable at maturity. 5 Sold merchandise for $11,800 cash, plus 13% HST. The cost of this sale was $5,350. Sunland Software uses a perpetual inventory system. 12 Provided services for customers who had paid $11.100 cash in advance. The payment included HST of $1.277. 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 $15,700 to creditors on account. 20 Sold 5.720 units of a new product on account for $50 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 $31 per unit. 29 During the month provided $2.150 of services for customers who redeemed their customer loyalty rewards. Assume that HST of 400 ENG 7:53 PM 2020-06-03 In January, the following selected transactions occurred: system. Jan. 2 Issued a $45,000, four-month, 8% note. Interest is payable at maturity. 5 Sold merchandise for $11,800 cash, plus 13% HST. The cost of this sale was $5,350. Sunland Software uses a perpetual inventory 12 Provided services for customers who had paid $11,100 cash in advance. The payment included HST of $1.277. 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, El, and income tax 17 Paid $15,700 to creditors on account. 20 Sold 5,720 units of a new product on account for $50 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 $31 per unit. 29 During the month, provided $2,150 of services for customers who redeemed their customer loyalty rewards. Assume that HST of $325 is included in the $2,150. 31 Issued 31,800 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 $254,600. 31 Recorded and paid the monthly payroll. Gross salaries were $21.950. Amounts withheld included CPP of $729. El of $375, and income tax of $3,543 Date Account Titles and Explanation Debit Credit Jan. 2 Cash 45000 Notes Payable 45000 (Borrowed cash and signed a note.) Jan. 5 Cash 13334 Sales 11800 HST Payable 1534 (To record cash sales plus HST.) Cost of Goods Sold Jan. 5 5350 5350 Merchandise Inventory (To record cost of goods sold.) Jan. 12 Unearned Revenue 11100 Service Revenue 9823 HST Payable 1277 (To record service revenue for cash previously received.) Jan. 14 HST Payable 9530 Cash 9530 (Remitted HST payable.) Jan. 15 CPP Payable 1330 El Payable 710 Income Tax Payable 3800 Cash 5840 (Remitted payroll deduction.) Jan. 17 Accounts Payable 15700 Cash 15700 (Payment on account.) Jan 20 Accounts Receivable 323180 286000 Sales 37180 HST Payable (To record sales on account plus HST.) 177320 Jan. 20 Cost of Goods Sold 177320 Jan. 20 Cost of Goods Sold 177320 Merchandise Inventory (To record cost of goods sold.) Unearned Revenue-Loyalty Program Jan. 29 2150 1825 Revenue from Rewards Program 325 HST Payable (To record redemption of rewards plus HST.) Jan. 31 Cash 254600 Sales Unearned Revenue Loyalty Program (To record sales and unearned revenue related to loyalty program.) Salaries Expense Jan. 31 21950 CPP Payable 729 El Payable 375 Income Tax Payable 3543 rewards plus HST.) Jan. 31 Cash 254600 Sales Unearned Revenue-Loyalty Program (To record sales and unearned revenue related to loyalty program.) Salaries Expense Jan. 31 21950 CPP Payable 729 El Payable 375 Income Tax Payable 3543 17303 Salaries Payable (To record salaries expense.) Jan. 31 v Salaries Payable 17303 Cash 17303 (To record payment of salaries payable.)
