Crane Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: 1. 2. 3. 3 4. 5. 6. 7. Crane's cash register showed the following totals at the end of the day on March 17: pre-tax sales $51,000, GST $2,550, and PST $3,570. Crane remitted $49,000 of sales taxes owing from March to the government on April 30. Crane received its property tax bill for the calendar year for $69,600 on March 31, payable May 31. Crane recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Crane paid its employees for the week of August 15 on August 20. The gross pay was $84,000. The company deducted $4,128 for CPP, $1,312 for El, $6,200 for pension, and $16,020 for income tax from the employees' pay. Crane recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837, respectively. On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions above were paid. On December 31, Crane's legal counsel believes that the company will have to pay damages of $42,000 next year to a local utility company for failing to pay it on time during the current year. (Hint: This will affect the Utilities Expense account.)
Crane Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: 1. 2. 3. 3 4. 5. 6. 7. Crane's cash register showed the following totals at the end of the day on March 17: pre-tax sales $51,000, GST $2,550, and PST $3,570. Crane remitted $49,000 of sales taxes owing from March to the government on April 30. Crane received its property tax bill for the calendar year for $69,600 on March 31, payable May 31. Crane recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Crane paid its employees for the week of August 15 on August 20. The gross pay was $84,000. The company deducted $4,128 for CPP, $1,312 for El, $6,200 for pension, and $16,020 for income tax from the employees' pay. Crane recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837, respectively. On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions above were paid. On December 31, Crane's legal counsel believes that the company will have to pay damages of $42,000 next year to a local utility company for failing to pay it on time during the current year. (Hint: This will affect the Utilities Expense account.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please no handwriting and no image without plagiarism please
Transcribed Image Text:Crane Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current
liabilities:
1.
2.
3.
4.
5.
6.
7.
Crane's cash register showed the following totals at the end of the day on March 17: pre-tax sales $51,000, GST
$2,550, and PST $3,570.
Crane remitted $49,000 of sales taxes owing from March to the government on April 30.
Crane received its property tax bill for the calendar year for $69,600 on March 31, payable May 31. Crane recorded no
entries pertaining to property tax during the current year prior to the receipt of this bill.
Crane paid its employees for the week of August 15 on August 20. The gross pay was $84,000. The company deducted
$4,128 for CPP, $1,312 for El, $6,200 for pension, and $16,020 for income tax from the employees' pay.
Crane recorded the employer portions of CPP and El for the week of August 15 on August 20 for $4,128 and $1,837,
respectively.
On September 15, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll transactions
above were paid.
On December 31, Crane's legal counsel believes that the company will have to pay damages of $42,000 next year to a
local utility company for failing to pay it on time during the current year.
(Hint: This will affect the Utilities Expense account.)
Transcribed Image Text:Record an adjusting entry on December 31 pertaining to property taxes. (Round answers to the nearest whole dollar, e.g.
5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries
before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
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