Swifty Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: 1. 2. 3. 4. Swifty's cash register showed the following totals at the end of the day on March 17: pre-tax sales $60,000, GST $3,000, and PST $4,200 Swifty remitted $49,000 of sales taxes owing from March to the government on April 30. Swifty received its property tax bill for the calendar year for $82,800 on March 31, payable May 31. Swifty recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Swifty paid its employees for the week of August 15 on August 20. The gross pay was $80,000. The company deducted $4,128 for CPP $1,312 for El, $6,000 for pension, and $16,020 for income tax from the employees' pay. Swifty recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837 respectively. On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions above were paid. On December 31, Swifty's legal counsel believes that the company will have to pay damages of $46,000 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.) 5. 6. 7. (b) Your answer is partially correct. Record an adjusting entry on December 31 pertaining to property taxes. (Round answers to the nearest whole dollar, e8. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit Date Dec 31 Cash 20700 Prepaid Property Tax 20700