Question 1 1. During the month of April, Kamloops Industries purchased office supplies on account for $12,000 plus GST of 5%. 2. Kamloops Industries had sales on account of $25,000 during March and collected GST of 5%. 3. At the end of August, the company remitted (paid) the GST paid and collected to the Canada Revenue Agency. Required Prepare the journal entries to record the above transactions. Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 2 Tim's gross payroll for the work week ending January 14 was $210,000. The company deducted $10,472 for CPP, $7,034 for EI, and $28,300 for income tax from the employees' pay. Chen's payroll costs for the week were $10,472 for CPP and $9,848 for EI. Required Prepare the journal entries to record the above transactions. Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 3 On January 1, 2020, Denver Corporation issued 5-year, 7% bond with a maturity value of $225,000. The bonds sell at 91.00 and pay interest on July 1 and January 1. Denver Corporation amortizes the bond using the effective interest rate method. The market rate is 8%. Required Prepare the journal entries to record the sale of the bond, the interest expense for July 1 and the interest accrual for December 31 (company has a year end of December 31). Explanations are not required. DATE ACCOUNT DEBIT CREDIT Question 4 The articles of incorporation for Shultz Autobody Inc. authorize the company to issue 800,000, $1.50 preferred shares and 1,000,000 common shares. During its first year of operations, Shultz Autobody Inc. completed the following transactions during 2020: Jan 3 Issued 75,000 common shares receiving cash of $750,000. Jan 28 Issued 10,000 preferred shares receiving cash of $100,000 Jan 30 Issued 7,500 common shares in exchange for equipment valued at $58,000 Dec 15 Shultz declared dividend $10,000 to its shareholders. Dec. 28 Shultz paid cash dividend. Required: (a) Record the transactions in the general journal (b) Prepare the shareholders equity section of Shultz balance sheet at December 31, 2020 assuming the company earned $50,000 in net income and paid $50,000 in dividends during its first year of operations. DATE ACCOUNT DEBIT CREDIT