P$13\mathrm{.}1$ The following are selected transactions of Pendlebury Department Store Ltd$.($PDSL$)$ for the current year ended December $31.$ PDSL is a private company operating in the province of Manitoba, where PST is $7\%$ and GST is $5\%.$ PDSL follows ASPE and has a periodic inventory system.

On February $2,$ PDSL placed an order to buy goods for resale from Hashmani Limited for $$46,000$ plus GST$.$ Terms of purchase are f$.$o$.$b$.$ destination, net $15.$ The goods arrived February $6$ and the invoice was paid on February $20.($Hint: Inventory for resale is purchased PST$-$exempt.$)$

On April $1,$ PDSL purchased a truck for $$50,000$ from Schuler Motors Limited, paying $$11,000$ cash and signing a one$-$year, $8\%$ note for the balance of the purchase price. Provincial sales tax of $7\%$ and GST of $5\%$ were charged by the supplier on the purchase price.

On May $1,$ PDSL borrowed $$83,000$ from First Provincial Bank by signing a $$92,000$ non$$interest$-$bearing note due one year from May $1.$

On June $30$ and December $31,$ PDSL remitted cheques for $$19,000$ each as instalments on its current year tax liability.

On August $14,$ PDSL$$s board of directors declared a $$13,000$ cash dividend that was payable on September $10$ to shareholders of record on August $31.$

On December $5,$ PDSL received $$750$ from Jefferson Ltd$.$ as a deposit on a trailer that Jefferson is using for an office move. The deposit is to be returned to Jefferson after it returns the trailer in good condition on January $15.($Hint: Use the account Refund Liability.$)$

On December $10,$ PDSL purchased new furniture and fixtures for $$8,000$ on account. Provincial sales tax of $7\%$ and GST of $5\%$ were charged by the supplier on the purchase price.

During December, cash sales of $$79,000$ were recorded, plus $7\%$ provincial sales tax and $5\%$ GST that must be remitted by the $15$th day of the following month. Both taxes are levied on the sale amount to the customer. Ignore any cost of goods sold.

PDSL$$s lease for its store premises calls for a $$2,500$ monthly rental payment plus $3\%$ of net sales. The payment is due one week after month end.

PDSL was advised during the month of December that it is legally required to restore the area $($considered a land improvement$)$ surrounding one of its new store parking lots, when the store is closed in $12$ years. PDSL estimates that the fair value of this obligation at December $31$ is $$46,000.$

The corporate tax return indicated taxable income of $$205,000.$ PDSL$$s income tax rate is $20\%.$

Instructions

Prepare all the journal entries necessary to record the above transactions when they occurred and any adjusting journal entries $($except for depreciation expense$)$ relative to the transactions that would be required to present financial statements at December $31$ in accordance with GAAP. Date each entry.

Identify the current liabilities that will be reported on PDSL$$s December $31$ SFP$,$ and indicate the amount of each one. Purchases

GST Receivable

Accounts Payable

Accounts Payable

cash

Notes Payable

Cash

Notes Payable

Sales Tax Payable

Cash

$$ Cash

Cash

Refund Liability

Furniture and Fixtures

GST Receivable

Accounts Payable

Cash

GST Payable

$550$

$1$

$($To record cash sales$)$

l

$($To accrue rent expense$)$

Land Improvements

Asset Retirement Obligation

$($To record asset retirement obligation$)$ Current Tax Expense

$($To record payment of current tax expense$)$

$[$

$1$

$($To accrue current tax expense$)$

$[$

$$

$($To accrue interest expense$)$

$[$

$1$

$1$