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P10-1B On January 1, 2018, Burlington Inc.s general ledger contained these opening balances for its liability accounts: Accounts payable $52,000 CPP payable 3,810 EI payable

P10-1B On January 1, 2018, Burlington Inc.s general ledger contained these opening balances for its liability accounts:

Accounts payable

$52,000

CPP payable

3,810

EI payable

1,598

Sales tax payable

18,000

Employee income tax payable

7,700

Unearned revenue

16,000

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.

13

Paid $18,000 ($7,500 GST to the Receiver General and $10,500 PST to the provincial Minister of Finance) for sales taxes collected in December.

14

Paid $13,108 to the Receiver General 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 EI $932).

15

Borrowed $18,000 from HSBC Bank for three months; 6% interest is payable monthly on the 15th of each month.

19

Provided services for customers who had made advance payments of $11,200. This amount includes applicable GST and PST, which is not payable until the related revenue is earned.

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 March 1.

29

Paid employees for the month. Gross salaries totalled $40,000 and payroll deductions included CPP of $1,980, EI of $752, and employee income tax of $9,474. Employee benefits included CPP of $1,980 and EI of $1,053.

Instructions

(a) Record the above transactions.

(b) Record any required adjusting entries at January 31.

(c) Prepare the current liabilities section of the statement of financial position at January 31.

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