60.1K

Verified Solution

Link Copied!

On January 1, 2021, Cullumber Software Company's general ledger contained these liability accounts: Accounts Payable Unearned Revenue-Loyalty Program CPP Payable El Payable HST Payable Income Tax Payable Unearned Revenue Vacation Pay Payable $54,000 5,450 1.430 785 9,630 4.100 17.900 9.150 Jan.2 5 12 14 15 17 20 Issued a $52,500, four-month, 6% note. Interest is payable at maturity. Sold merchandise for $11.200 cash, plus 13% HST. The cost of this sale was $6,200. Cullumber Software uses a perpetual inventory system. Provided services for customers who had paid $12,600 cash in advance. The payment included HST of $1,450. Paid the Receiver General (federal government) for sales taxes collected in December 2020. Paid the Receiver General for amounts owing from the December payroll for CPP. El, and income tax Paid $16,200 to creditors on account. Sold 4.420 units of a new product on account for $65 per unit, plus 13% HST. This new product has a one-year warranty. It is estimated that 9% of the units sold will be returned for repair at an average cost of $10 per unit. The cost of this sale was $27 per unit. During the month, provided $2.700 of services for customers who redeemed their customer loyalty rewards. Assume that HST of $225 is included in the $2.700. Issued 32,100 loyalty rewards points worth $1 each. Based on past experience. 20% of these points are expected to be redeemed. Cash sales related to the issuance of the loyalty points were $258,600. Recorded and paid the monthly payroll. Gross salaries were $22.950. Amounts withheld included CPP of $734, El of $395, and income tax of $3,573. 29 31 31 Record the transactions. (Credit account tilities 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 for the amounts Round answers to decimal places es: 5,276 Record Journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (Borrowed cash and signed a note.) (To record cash sales plus HST.) (To record cost of goods sold.) (To record service revenue for cash previously received.) > (Remitted HST payable.) Jan. 15 (Remitted payroll deduction) (Remitted payroll deduction) (Payment on account.) (To record sales on account plus HST.) (To record cost of goods sold.) Andredemtion of (To record redemption of rewards plus HST.) & (To record sales and unearned revenue related to loyalty program.) (To record salaries expense.) (To record salaries expense.) (To record payment of salaries payable.) Record adjusting entries for the following 1 2 3 Interest on the note payable The estimated warranty liability Employee benefits for CPP ET and vacation pay accrued at a rate of 4%) Estimated property taxes of $9.900 for the 2021 calendar year Account Titles and Explanation Debit Credit Date (1) Jan 31 (To accrue interest expense) (2) Jan 31 (To accrue warranty expense.) (3) Jan 31 (To record employer benefits expense. (4) Jan Prepare the current liabilities section of the balance sheet at January 31. (Round answers to decimal places es 5.276) CULLUMBER SOFTWARE COMPANY (Partial) Balance Sheet

Answer & Explanation Solved by verified expert

See Answer