Sheridan Wholesalers Ltd has a December 31 year end The company incurred the following transactions related to current liabilities 1 Sheridans cash register showed the following totals at the end of the day on March 17 pre tax sales $52,000, GST $2,600, and PST $3,640 2 Sheridan remitted $49,000 of sales taxes owing from March to the government on April 30 3 Sheridan received its property tax bill for the calendar year for $58,800 on March 31, payable May 31 Sheridan recorded no entries pertaining to property tax during the current year prior to the receipt of this bill 4 Sheridan paid its employees for the week of August 15 on August 20 The gross pay was $82,000 The company deducted $4,128 for CPP, $1,312 for EI, $6,500 for pension, and $16,020 for income tax from the employees pay 5 Sheridan recorded the employer portions of CPP and EI for the week of August 15 on August 20 for $4,128 and $1,837, respectively 6 On September 15, all amounts owing for employee income taxes, CPP, and EI pertaining to the payroll transactions above were paid 7 On December 31, Sheridans legal counsel believes that the company will have to pay damages of $50,000 next year to a local utility company for failing to pay it on time during the current year ( Hint This will affect the Utilities Expense account )

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Posted on Jul 31, 2024

Sheridan Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities:

1.		Sheridans cash register showed the following totals at the end of the day on March 17: pre-tax sales $52,000, GST $2,600, and PST $3,640.
2.		Sheridan remitted $49,000 of sales taxes owing from March to the government on April 30.
3.		Sheridan received its property tax bill for the calendar year for $58,800 on March 31, payable May 31. Sheridan recorded no entries pertaining to property tax during the current year prior to the receipt of this bill.
4.		Sheridan paid its employees for the week of August 15 on August 20. The gross pay was $82,000. The company deducted $4,128 for CPP, $1,312 for EI, $6,500 for pension, and $16,020 for income tax from the employees pay.
5.		Sheridan recorded the employer portions of CPP and EI for the week of August 15 on August 20 for $4,128 and $1,837, respectively.
6.		On September 15, all amounts owing for employee income taxes, CPP, and EI pertaining to the payroll transactions above were paid.
7.		On December 31, Sheridans legal counsel believes that the company will have to pay damages of $50,000 next year to a local utility company for failing to pay it on time during the current year.
		(Hint: This will affect the Utilities Expense account.)