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Oustin There is only one question!) The following transactions relate to Kern Company 2002 Purchased a machine from Jack Deere Inc, by signing a $60.0005

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Oustin There is only one question!) The following transactions relate to Kern Company 2002 Purchased a machine from Jack Deere Inc, by signing a $60.0005 year note payable plas interest 8% (per annum). Interest is payable each December 31st. Ignore GST and PST for this transaction) Oct. 12 Gave Devis Company $2,500 cash and a $7.500, 90 dny note payable plus interest 10% (per antam, to see an extension of their post dur account payable Nos. 16 Betowed 510.000 from the Bank of Nova Scotia by signing a 510,000,60 daynote payable plus interest (perim) Dec. 1 Entered into a contract to provide delivery wervices for a customer at $300 per month Received payment for the month of December January and February (lane OST and PST for this transaction) Dec 18 Purchased inventory from CBC Limited by signing a 90 day.aote pale plus interest (per annum) The cost of the inventory purchased was $24.000 plus GST Oscation continued 2005 Jan 15 tuued a cheque to the Receiver General of Cmala for remittance of the employee deduction Jan 15 Issued a cheque to the local union for the union dues withheld in December Jan 15 Tused a cheque to the Receiver General of Canada for remittance of the GST owing Jan 15 Tuod a cheque to the Treaswer of Ontario for remittance of the PST owing Paid the notes dated October 12, 2007. November 16, 2007 and December 18, 2007 (You will have to correctly date these journal entries Required (1) Prepare journal entries to record all of the above raniticus. Be sure to sign dates to all of the entries Prepare the Current stilistes" unction of the Balance Sheet for Kem Company es at December 31, 2007 Dec 23 Sold merchandise on credit to John Doe em 310, 30, in the amount of $25,000 phas GST 6% and PST 48%. The cont of the merchandise inventory sold was $15,000 Dec 28 Recorded the information from the payroll joumal for the mouth of December and recorded the employer's portion of the payroll deductions. The last pay date in December was December 28). Grous Wages $9,256.00 CPP withheld El withheld 24992 Income Tax witheld 1.960.00 Union Dues withheld 92.00 Net Pay 6,692.36 Dec 31 Paid the interest due on the note payable dated January 1, 2007. Dec 31 Prepared all necessary year end adjusting entries. (More ca the back of this pape!) Question #1 (There is only one question!) The following transactions relate to Kern Company: 2007 Jan. 1 Purchased a machine from Jack Deere Inc., by signing a $60,000, 5 year note payable plus interest @ 8% (per annum). Interest is payable each December 31st. (Ignore GST and PST for this transaction). Oct.12 Gave Davies Company $2,500 cash and a $7,500, 90 day note payable plus interest @ 10% (per annum), to secure an extension of their past due account payable. Nov. 16 Borrowed $10,000 from the Bank of Nova Scotia by signing a $10,000, 60-day note payable plus interest @ 9% (per annum). Dec. 1 Entered into a contract to provide delivery services for a customer at $300 per month Received payment for the months of December, January and February. (Ignore GST and PST for this transaction) Dec. 18 Purchased inventory from CBC Limited by signing a 90 day, note payable plus interest @ 7% (per annum). The cost of the inventory purchased was $24,000 plus GST @6% Dec. 23 Sold merchandise on credit to John Doe, terms 2/10, 1/30, in the amount of $25,000 plus GST 6% and PST @8%. The cost of the merchandise inventory sold was $15,000 Dec. 28 Recorded the information from the payroll journal for the month of December and recorded the employer's portion of the payroll deductions. (The last pay-date in December was December 28). Gross Wages $9,256.00 CPP withheld 261.72 El withheld 249.92 Income Tax withheld 1.960.00 Union Dues withheld 92.00 Net Pay 6,692.36 Dec. 31 Paid the interest due on the note payable dated January 1, 2007 Dec. 31 Prepared all necessary year-end adjusting entries. (More on the back of this page!) Question #1 (continued): 2008 Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the employee deductions Jan. 15 Issued a cheque to the local union for the union dues withheld in December Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the GST owing. Jan. 15 Issued a cheque to the Treasurer of Ontario for remittance of the PST owing. Paid the notes dated October 12, 2007, November 16, 2007 and December 18, 2007. (You will have to correctly date these journal entries!) Required: (1) Prepare journal entries to record all of the above transactions. Be sure to assign dates to all of the entries. Question # (There is only one question!) The following transactions relate to Kern Company: 2007 Jan. 1 Purchased a machine from Jack Deere Inc., by signing a $60,000, 5 year note payable plus interest @ 8% (per annum). Interest is payable each December 31st. (Ignore GST and PST for this transaction). Oct. 12 Gave Davies Company $2,500 cash and a $7,500, 90 day note payable plus interest @ 10% (per annum), to secure an extension of their past due account payable. Nov. 16 Borrowed $10,000 from the Bank of Nova Scotia by signing a $10,000, 60-day note payable plus interest @ 9% (per annum). Dec. 1 Entered into a contract to provide delivery services for a customer at $300 per month. Received payment for the months of December, January and February. (Ignore GST and PST for this transaction). Dec. 18 Purchased inventory from CBC Limited by signing a 90 day, note payable plus interest @ 7% (per annum). The cost of the inventory purchased was $24,000 plus GST @6% Dec. 23 Sold merchandise on credit to John Doe terms 2/10, 1/30, in the amount of $25,000 plus GST @ 6% and PST @ 8%. The cost of the merchandise inventory sold was $15,000 Dec. 28 Recorded the information from the payroll journal for the month of December and recorded the employer's portion of the payroll deductions. (The last pay-date in December was December 28). Gross Wages $9,256.00 CPP withheld 261.72 EI withheld 249.92 Income Tax withheld 1,960.00 Union Dues withheld 92.00 Net Pay 6,692.36 Dec. 31 Paid the interest due on the note payable dated January 1, 2007. Dec 31 Prepared all necessary year-end adjusting entries. (More on the back of this page!) Question #1 (continued): 2008 Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the employee deductions. Jan. 15 Issued a cheque to the local union for the union dues withheld in December. Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the GST owing. Jan. 15 Issued a cheque to the Treasurer of Ontario for remittance of the PST owing. Paid the notes dated October 12, 2007, November 16, 2007 and December 18, 2007 (You will have to correctly date these journal entries!) Required: (1) Prepare journal entries to record all of the above transactions. Be sure to assign dates to all of the entries

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