Sheridan Snow Removal Ltd. is a residential and commercial snow removal company. Sheridan signs contracts with customers for snow removal services that start on November 1 and end on March 30 . The company starts signing contracts in the month of September for the winter season. Sheridan has a year end on December 31 and had the following transactions involving current liabilities during the year: 1. Sheridan signs contracts with customers and requests 100% of the contract price as a deposit at the time of signing. The company signed contracts for snow removal totaling $495,000. Based on past history, Sheridan estimates that one third (1/3) of the contract amount is earned by December 31. 2. Sheridan has 10 employees, who are on standby in the event it snows. The employees earn gross wages of $125,000 for the year. From this, the company deducted 15% for income taxes, $6,813 in CPP premiums, and $1,975 in El premiums before distributing the pay cheques to the staff. As an employer, Sheridan was also required to match the employees' CPP premiums and pay $2,765 in El premiums. Sheridan had fallen behind in making payments owing to the government. The last 4 months of the year were still outstanding (that is, 4/12 ). 3. Sheridan ordered salt and sand from suppliers for the upcoming season. The suppliers provided credit to Sheridan and at the end of the year, Sheridan owed $4,470 on total purchases of $5,960. 4. Sheridan also sells service cards whereby a customer is not required to sign up for the season, instead the customer purchases a 5 or 10 snow removal service package to be used at the customer's discretion. The service packages cannot be carried over to the next season and expire on March 30 . During the current winter session, the company sold $99,000 in service cards. As of December 31 , none of the customers had used up the service cards, anticipating heavier snow fall in the January and February months. deec - If no olld Sheridan Snow Removal Ltd. is a residential and commercial snow removal company. Sheridan signs contracts with customers for snow removal services that start on November 1 and end on March 30 . The company starts signing contracts in the month of September for the winter season. Sheridan has a year end on December 31 and had the following transactions involving current liabilities during the year: 1. Sheridan signs contracts with customers and requests 100% of the contract price as a deposit at the time of signing. The company signed contracts for snow removal totaling $495,000. Based on past history, Sheridan estimates that one third (1/3) of the contract amount is earned by December 31. 2. Sheridan has 10 employees, who are on standby in the event it snows. The employees earn gross wages of $125,000 for the year. From this, the company deducted 15% for income taxes, $6,813 in CPP premiums, and $1,975 in El premiums before distributing the pay cheques to the staff. As an employer, Sheridan was also required to match the employees' CPP premiums and pay $2,765 in El premiums. Sheridan had fallen behind in making payments owing to the government. The last 4 months of the year were still outstanding (that is, 4/12 ). 3. Sheridan ordered salt and sand from suppliers for the upcoming season. The suppliers provided credit to Sheridan and at the end of the year, Sheridan owed $4,470 on total purchases of $5,960. 4. Sheridan also sells service cards whereby a customer is not required to sign up for the season, instead the customer purchases a 5 or 10 snow removal service package to be used at the customer's discretion. The service packages cannot be carried over to the next season and expire on March 30 . During the current winter session, the company sold $99,000 in service cards. As of December 31 , none of the customers had used up the service cards, anticipating heavier snow fall in the January and February months. deec - If no olld
