80.2K

Verified Solution

Link Copied!

On February 28, 2021, Sheridan Ltd's general ledger contained the following liability accounts: Accounts payable CPP payable El payable Sales tax payable Employee income tax payable $47,000 3,180 1,123 6,100 5,520 The following selected transactions occurred during the month: Mar. 2 3 4 12 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $14,000. Interest is due at maturity. Sold inventory for cash totalling $50,000, plus 13% HST. The cost of goods sold was $24,000. Sheridan uses a perpetual inventory system. Received the property tax bill of $18,000 for the calendar year. It is payable on May 31. (Hint: No accrual has been recorded during the year.) Provided services for customers worth $10,000 plus HST of 13%. The company received payment in full for services and HST. Remitted $9,823 to the government for amounts owing from the February payroll for employee payroll deductions of $7,578 (CPP $1,590, El $468, and employee income tax $5,520) and for employee benefits of $2,245 (CPP $1.590 and El $655). Paid $29,000 to trade creditors on account Paid employees for the month. Gross salaries totalled $16,000 and payroll deductions included CPP of $802, EI of $259, and employee income tax of $5,880. Employee benefits included CPP of $802 and El of $363. Remitted $6,100 HST pertaining to sales tax collected in February 16 27 30 31 Mar. 16 CPP Payable 3180 El Payable 1123 Employee Income Tax Payable 5520 Cash Mar. 27 Salaries Expense 16000 16000 CPP Payable El Payable Employee Income Tax Payable Cash (To record payroll and employee deductions) Mar. 30 > Income Tax Expense CPP Payable El Payable (To record employee benefits) Salaries Expense Date Account Titles and Explanation Debit Credit Mar. 31 List of Accounts Prepare the current liabilities section of the statement of financial position at March 31. (Round answers to decimal places, eg. 5,275.) SHERIDAN LTD. Statement of Financial Position (partial) Current liabilities $ Total current liabilities $

Answer & Explanation Solved by verified expert

See Answer