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The following are a selection of journal entries that Wine About It! Inc., an incorporated company owning three craft wine stores, recorded in February 2022.
The following are a selection of journal entries that Wine About It! Inc., an incorporated company owning three craft wine stores, recorded in February 2022. Wine About It! Inc. is in a province where GST is 5% and PST is 8%. The employee's CPP rate is 5.25% of earnings and the employee's El rate is 1.58% of earnings. The employer's share is equal to 100% of the employee's share of CPP and 140% of employee's share of El. No accruals for property taxes have been recorded yet in the company's current fiscal year which ends on December 31. A bank loan was taken out January 1, with the following details: Loan principal $150,000; Term of 5 years; Interest Rate of 5% and blended instalment payments of $2,831 / month. Indicate which of the entries below were correctly recorded. b. Feb. 10 Interest Expense 2,400 Interest Payable 2,400 To accrue interest for the month ending Feb 10 on $40,000 note taken out on Jan 10 at 6% interest. Principal and interest due July 10. c. Feb.15 d. Feb.15 e. Feb.27 Property Tax Expense 520 Property Tax Payable 520 Received invoice for property taxes for the calendar year, payable June 30. $3,1202 /12)
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