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Pharoah's Cycle Booth Ltd. had the following transactions involving current liabilities in its first year of operations: 1. The company ordered bicycles from suppliers for

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Pharoah's Cycle Booth Ltd. had the following transactions involving current liabilities in its first year of operations: 1. The company ordered bicycles from suppliers for $511,000, on credit. It pald $226,000 to stippliers during the year. 2. The shop has five employees, who earn gross wages of $377,000 for the year. From this, the company deducted 24 for income taxes, $20,547 in CPP premiums, and $5,957 in El premlums before distributing the cheques to the statt. As an employer, Pharoah was also required to match the employees' CPP premiums and pay $8,340 in El premiums. Eleven. twelfths of the amounts due to the government (all except the last month) were paid before the end of the year. 3. The company gives customers a one-year warranty against defects on bicycles. Management estimated that watranty costs would total 1.5% of sales. Sales of bicycles for the year were $2,520,000. During the year, the compary spent $26,300 on refunds under the warranty. 4. Some customers order expensive, custom-fitted bicycles. In these cases, the company requires them to pay a deposit of 25 of the selling price when the order is placed. During the year, deposits totalling $49,300 were received for custom orders. None of these orders have been delivered yet. (a) Prepare journal entries to record the transactions, (Credit account titles are automatically indented when the amount is entered, Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 0 decimal ploces, es, 14,674. Lbst all debit entries before credit entries.) (To rocord purchiase of isventary en scoount). (To recoed puyment to supplies) 2. (To record paymert to the staH4) (To recond employor's liabilies.) (To record payment to the govemment.) 3. (To record warranty expense.) (T0 record wamanty paymentsi). 4

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