Question 4 Mushroom Limited has a December 31 year-end. On December 1, 2021 Mushroom had the following current liabilities listed on its books: Bank overdraft S18,750 Accounts payable SI22.500 CPP. Et and income tax payable S6,620 Unearned revenues $12.000 Required 1. Prepare all the joumal entries required as a result of the following transactions. 2. Prepare the current liabilities section of the balance sheet at December 31, 2021. Dec 21 During December 2021 Mushroom engaged in the following transactions: Bought $20,000 of inventory on credit, terms of 30 days Dec 1 Dec 2 Negotiated a $40,000 line of credit with their bank and drew-down $18.750 to replace the bank overdratt. Interest will be charged at 4%. based on the average balance outstanding during the month, and paid on the last day of the month Dec 7 Sold goods worth $30,000 on which they had previously received a $12,000 deposit. The balance was due in 30 days. Dec 8 Paid S63,000 owing to a supplier Dec 12 Paid amounts due to federal government for the payroll amounts outstanding from November 30. Dec 19 Sold 566,000 of goods half for cash, half on credit. Dec 20 Made a $10,000 payment on the line of credit Received $5,000 from a client for work that will be performed in January 2022 Dec 22 Received a lawyer's letter stating that a customer is suing the company for failure to clear the snow away from the front of the business premises. The customer fell and was injured as a result. Mushroom's lawyer says that it is likely that the company will be required to pay but she is unable to reasonably determine the amount of the loss Dec 28 Paid the monthly payroll amounts to employees. The gross payroll was $16.200. Amounts withheld from the employees' cheques were as follows: Canada pension plan premiums (CPP) 1.200 Employment insurance premiums (EI) $1,850 Income tax $2,800 At the same time, the company also recorded their liability for amounts due to the government for CPP and El. Assume the employer must match the employees' contribution for both El and CPP