Vacation Villas had the following selected transactions.
Feb. 1 Signs a $30,000, eight-month. 596-interest-bearing note payable to CountryBank and receives $30,000 in cash.
8 Sales on account of $14,500, plus 13% HST.
14 The payroll for the previous week consists of salaries of $15.000. All salaries are subject to CPP of $692 and El of $282 and withholding taxes of $2,700. The salaries are paid on February 21. The employer's payroll expense is also recorded.
15 Purchase furniture worth $1,975 to be paid for in 30 days.
21 Pays employees the salaries for the pay period ending February 14.
28 Accrues interest on the CoumryBank note payable.
28 Acaues the required warranty provision because some of the sales were made under warranty Of the units sold under warranty, 20 are expected to become defective. Repair costs are estimated to be $25 per unit
Instructions
Journalize the February transactions.
Taking it Further
The accountant at Vacation Villas believes a current liability is a debt that can be expected to be paid in one year. Is the accountant correct?