Question #1 (There is only one question!) Question #1 (continued): The following transactions relate to Kern Company: 2008 2007 Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the employee Jan. 1 Purchased a machine from Jack Deere Inc., by signing a $60,000, 5 year note payable deductions. plus interest @ 8% (per annum). Interest is payable each December 31st. (Ignore GST and PST for this transaction). Jan. 15 Issued a cheque to the local union for the union dues withheld in December. Oct. 12 Gave Davies Company $2,500 cash and a $7,500, 90 day note payable plus interest @ Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the GST owing 10% (per annum). to secure an extension of their past due account payable. Jan. 15 Issued a cheque to the Treasurer of Ontario for remittance of the PST owing. Nov. 16 Borrowed $10.000 from the Bank of Nova Scotia by signing a $10,000, 60-day note payable plus interest @ 9% (per annum). Paid the notes dated October 12, 2007, November 16. 2007 and December 18, 2007. Dec. 1 Entered into a contract to provide delivery services for a customer at $300 per month. (You will have to correctly date these journal entries!) Received payment for the months of December, January and February. (Ignore GST and PST for this transaction). Required: Dec. 18 Purchased inventory from CBC Limited by signing a 90 day. note payable plus interest @ 7% (per annum). The cost of the inventory purchased was $24,000 plus GST (1) Prepare journal entries to record all of the above transactions. Be sure to assign dates to all @6% of the entries. Dec. 23 Sold merchandise on credit to John Doe, terms 2/10, n/30, in the amount of $25,000 (2) Prepare the "Current Liabilities" section of the Balance Sheet for Kern Company as at plus GST @ 6% and PST @ 8%. The cost of the merchandise inventory sold was December 31, 2007. $15,090. Dec. 28 Recorded the information from the payroll journal for the month of December and recorded the employer's portion of the payroll deductions. (The last pay-date in December was December 28) Gross Wages $9,256.00 CPP withheld 261.72 EI withheld 249.92 Income Tax withheld 1,960.00 Union Dues withheld 92.00 H Net Pay 6,692.36 Dec. 31 Paid the interest due on the note payable dated January 1, 2007. Dec. 31 Prepared all necessary year-end adjusting entries. (More on the back of this page!)