P10.1B (LO 1, 2, 3) On January 1, 2021, Burlington Inc.'s general ledger contained these opening balances for its liability accounts: Accounts payable $52,000 Sales tax payable $18,000 CPP payable 3,810 Employee income tax payable 7,700 El payable 1,598 The following selected transactions occurred during the month. Jan 5 Sold inventory for cash totalling $20,000, plus 5% GST and 7% PST. The cost of goods sold was $14,000. Burlington uses a perpetual inventory system. 14 Paid $13,108 to the government for amounts owing from the December payroll for the employee payroll deductions of $10,271 (CPP $1,905, EI $666, and employee income tax $7,700) and employee benefits of $2,837 (CPP $1,905 and El $932). 15 Borrowed $18,000 from Evergreen Finance Ltd. by issuing a note payable due in three months; 6% interest is payable monthly on the 15th of each month. 19 Provided services for customers who paid $11,200 plus the applicable GST and PST. 22 Paid $32,000 to trade creditors on account. 28 Received assessment of property taxes of $4,200 for the calendar year. They are payable on May 31. 29 Paid employees for the month. Gross salaries totalled $40,000 and payroll deductions included CPP of $2,025, El of $648, and employee income tax of $9,474. Employee benefits included CPP of $2,025 and El of $907. 31 Remitted $18,000 ($7,500 GST and $10,500 PST to the applicable governments) for sales taxes collected in December. Instructions a. Record the above transactions. b. Record any required adjusting entries at January 31. (The company records adjusting entries at the end of every month.) c. Prepare the current liabilities section of the statement of financial position at January 31. P10.1B (LO 1, 2, 3) On January 1, 2021, Burlington Inc.'s general ledger contained these opening balances for its liability accounts: Accounts payable $52,000 Sales tax payable $18,000 CPP payable 3,810 Employee income tax payable 7,700 El payable 1,598 The following selected transactions occurred during the month. Jan 5 Sold inventory for cash totalling $20,000, plus 5% GST and 7% PST. The cost of goods sold was $14,000. Burlington uses a perpetual inventory system. 14 Paid $13,108 to the government for amounts owing from the December payroll for the employee payroll deductions of $10,271 (CPP $1,905, EI $666, and employee income tax $7,700) and employee benefits of $2,837 (CPP $1,905 and El $932). 15 Borrowed $18,000 from Evergreen Finance Ltd. by issuing a note payable due in three months; 6% interest is payable monthly on the 15th of each month. 19 Provided services for customers who paid $11,200 plus the applicable GST and PST. 22 Paid $32,000 to trade creditors on account. 28 Received assessment of property taxes of $4,200 for the calendar year. They are payable on May 31. 29 Paid employees for the month. Gross salaries totalled $40,000 and payroll deductions included CPP of $2,025, El of $648, and employee income tax of $9,474. Employee benefits included CPP of $2,025 and El of $907. 31 Remitted $18,000 ($7,500 GST and $10,500 PST to the applicable governments) for sales taxes collected in December. Instructions a. Record the above transactions. b. Record any required adjusting entries at January 31. (The company records adjusting entries at the end of every month.) c. Prepare the current liabilities section of the statement of financial position at January 31
