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Blossom's Cycle Booth Ltd. had the following trans The company ordered bicycles from suppliers for $457,000, on credit. It paid $202,000 to suppliers during the year. The shop has five employees, who earn gross wages of $337,000 for the year. From this, the company deducted 24% for income taxes, $18,367 in CPP premiums, and $5.325 in El premiums before distributing the cheques to the staff. As an employer, Blossom was also required to match the employees' CPP premiums and pay $7.455 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.. 1 2 The company gives customers a one-year warranty against defects on bicycles, Management estimated that warranty costs would total 1.5% of sales. Sales of bicycles for the year were $2,260.000. During the year, the company spent $23,580 on

Blossom's Cycle Booth Ltd. had the following trans The company ordered bicycles from suppliers for $457,000, on credit. It paid $202,000 to suppliers during the year. The shop has five employees, who earn gross wages of $337,000 for the year. From this, the company deducted 24% for income taxes, $18,367 in CPP premiums, and $5.325 in El premiums before distributing the cheques to the staff. As an employer, Blossom was also required to match the employees' CPP premiums and pay $7.455 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.. 1 2 The company gives customers a one-year warranty against defects on bicycles, Management estimated that warranty costs would total 1.5% of sales. Sales of bicycles for the year were $2,260.000. During the year, the company spent $23,580 on

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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G Show Attempt History Current Attempt in Progress Blossom's Cycle Booth Ltd. had the following transactions involving current liabilities in its first year of operations: The company ordered bicycles from suppliers for $457,000, on credit. It paid $202,000 to suppliers during the year. The shop has five employees, who earn gross wages of $337,000 for the year. From this, the company deducted 24% for income taxes, $18,367 in CPP premiums, and $5,325 in El premiums before distributing the cheques to the staff. As an employer, Blossom was also required to match the employees' CPP premiums and pay $7,455 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. 1. 2. 3 4. The company gives customers a one-year warranty against defects on bicycles, Management estimated that warranty costs would total 1.5% of sales. Sales of bicycles for the year were $2,260,000. During the year, the company spent $23,580 on refunds under the warranty. Some customers order expensive, custom-fitted bicycles. In these cases, the company requires them to pay a deposit of 25% of the selling price when the order is placed. During the year, deposits totalling $44,200 were received for custom orders. None of these orders have been delivered yet.
Transcribed Image Text:G Show Attempt History Current Attempt in Progress Blossom's Cycle Booth Ltd. had the following transactions involving current liabilities in its first year of operations: The company ordered bicycles from suppliers for $457,000, on credit. It paid $202,000 to suppliers during the year. The shop has five employees, who earn gross wages of $337,000 for the year. From this, the company deducted 24% for income taxes, $18,367 in CPP premiums, and $5,325 in El premiums before distributing the cheques to the staff. As an employer, Blossom was also required to match the employees' CPP premiums and pay $7,455 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. 1. 2. 3 4. The company gives customers a one-year warranty against defects on bicycles, Management estimated that warranty costs would total 1.5% of sales. Sales of bicycles for the year were $2,260,000. During the year, the company spent $23,580 on refunds under the warranty. Some customers order expensive, custom-fitted bicycles. In these cases, the company requires them to pay a deposit of 25% of the selling price when the order is placed. During the year, deposits totalling $44,200 were received for custom orders. None of these orders have been delivered yet.
Prepare the current liabilities section of the statement of financial position as it would appear at the end of the year. (Round answers to 0 decimal places, eg. 14,674) Current Liabilities
Transcribed Image Text:Prepare the current liabilities section of the statement of financial position as it would appear at the end of the year. (Round answers to 0 decimal places, eg. 14,674) Current Liabilities
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