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Prepare all nevessary joirnal entries related to the above transactions ...

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Accounting

Prepare all nevessary joirnal entries related to the above transactions
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Lyrtricks Ltd, which has a December 31 year end, had the following transactions in December 2020 and January 2021, 2020 Dec. 1 Dec. 31 The company borrowed $110,000 from a bank on a five-year loan payable. The terms of the loan stipulate that Lyrtricks must repay 1/5 of the principat every November 30 plus the interest accrued to that date. The loan bears interest at 9% per annum Recorded employee wages for December. The wages eamed by employees amounted to $9,300, and the company withheld CPP of $536, El of $452, and income taxes of $2,300. Lyrtricks employer contributions were $536 for CPP and $633 for El Recorded the adjusting entry to record the interest incurred on the bank loan during December Recorded the entry to reclassify the current portion of the bank loan Dec 31 Dec. 31 2021 Jan 2 Jan. 15 Pald the wages recorded on December 31. Made the remittance to the government related to the December 31 payroll. Date Account and explanation Debat Credit 2020 Dec. 1 Dec. 31 (To record wages payable.) (To record employer's liabilities.) Dec. 31 (To record interest.) (To record reclassification of current portion of bank loan.) 2021 Jan. 2 Jan. 15

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