Required:

1. Journalized the above transactions

2. Show the appropriate financial statement presentation for all liabilities.

Sundial Technologies produces and sells customized network systems in New Brunswick. The company offers a 60-days, all software and labor and an extra 90-days, parts-only warranty on all of its products. The company had the following transactions in 2013:

Jan 31 - Sales for the month totaled $350,000 (not including HST), of which 95% were on credit. The company collects 13% HST on all sales and estimates its warranty cost at 2% of sales.

Jan 31 Based on last years property tax assessment, estimated that the property taxes for the year would be $114,000 (6% of last years $1,900,000 assessed value). Recorded the estimated property taxes for the month; credit Property Taxes Payable.

Feb 4 Completed repair work for a customer. The software ($3000) and labor ($3250) were all covered under the warranty.

February 7 Remitted the appropriate HST for the month of January (the company had paid $15,610 HST on purchases in January).

Feb 28 Recorded the estimated property taxes for the month of February.

Feb 28 Sales for the month totaled $325,000 (not including HST), of which 90% were on credit. The company estimates its warranty costs at 2% of sales.

Mar 7 Remitted the appropriate HST for the month of February (the company had paid $18,648 HST on purchases in February).

Mar 8 Sundial Technologies received notice that it was being sued by a customer for an error resulting from the failure of its product. The companys lawyer was reluctant to estimate the likely outcome of the lawsuit, but another customer indicated that a similar case had resulted in a $100,000 settlement.

Mar 15 Completed repair work for a customer. The software ($3500) and labor ($2750) were all covered under the warranty.

Mar 21 Completed Repair work for a customer. The software ($1500) was covered by the warranty, but the labor ($1650) was not. Payment for the labor is due from the customer in 30 days.

Mar 31 Sales for the month totaled $315,000 (not including HST), of which 80% was on credit. The company estimates its warranty costs will increase to 4% of sales.

Mar 31 Received the property tax assessment for 2013. It showed the assessed value of the property to be $2,300,000 and a tax rate of 5.6 % of the assessed value. The company made the appropriate adjustment and used the Property Taxes Payable account. Property tax will be paid on December 31, 2013.

General Journal
DATE 2014		ACCOUNT TITLES AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT

SUNDIAL TECHNOLOGIES
Balance Sheet
March 31, 2014
LIABILITIES