Question 2 of 3 - / 100 View Policies Current Attempt in Progress Joan's Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations: 1. 2. 3. The company ordered golf equipment from suppliers for $552,000, on credit. It paid $508,500 to suppliers during the year. The shop has seven employees, who earn gross wages of $231,000 for the year. From this, the company deducted 22% for income taxes, $11,400 in CPP premiums, and $3,770 in El premiums before distributing the cheques to the staff. As an employer, Joan was also required to match the employees' CPP premiums and pay $5,278 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. The company gives customers a one-year warranty against defects on golf clubs. Management estimated that warranty costs would total 2% of sales. Sales of golf clubs for the year were $1,150,000. During the year, the company spent $13,400 on refunds under the warranty. Some customers order very expensive, custom-made golf clubs. In these cases, the company requires them to pay a deposit of 50% of the selling price when the order is placed. During the year, deposits totalling $23,500 were received for custom orders. None of these orders have been delivered yet. 4. Question 2 of 3