View Policies Current Attempt in Progress Joan's Golf Shop Ltd. had the following transactions involving current liabilities in its first year of operations: 1. 2. 3. 4. The company ordered golf equipment from suppliers for $541,000, on credit. It paid $496,000 to suppliers during the year. The shop has seven employees, who earn gross wages of $228,000 for the year. From this, the company deducted 20% for income taxes, $11.300 in CPP premiums, and $3,720 in El premiums before distributing the cheques to the staff. As an employer, Joan was also required to match the employees' CPP premiums and pay $5,208 in El premiums. Eleven-twelfths of the amounts due to the government (all except the last month) were paid before the end of the year. The company gives customers a one-year warranty against defects on golf clubs. Management estimated that warranty costs would total 2% of sales. Sales of golf clubs for the year were $1,200,000. During the year, the company spent $13,400 on refunds under the warranty. Some customers order very expensive, custom-made golf clubs. In these cases, the company requires them to pay a deposit of 50% of the selling price when the order is placed. During the year, deposits totalling $21,000 were received for custom orders. None of these orders have been delivered yet. Prepare journal entries to record the transactions. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Round answers to 0 decimal places, e.g. 14,674.) No. Account and explanation 1. 2. (To record purchase of Inventory on account.) (To record payment to supplier.) (To record payment to the staff.) Debit Credit II 3. (To record employer's liabilities.) (To record payment to the government.) (To record warranty expense.) (To record warranty payments.) ||| |||||| 3. (To record warranty expense.) (To record warranty payments.) eTextbook and Media List of Accounts 11 ||||||| Prepare the current liabilities section of the statement of financial position as it would appear at the end of the year. (Round answers to O decimal places, e.g. 14,674.) Current Liabilities: eTextbook and Media List of Accounts