Swifty Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: Swifty's cash register showed the following totals at the end of the day on March 17: pre-tax sales $55,000, GST $2,750, and PST $3,850. 1. 2. 3. 4. 5. 6. 7. Swifty remitted $49,000 of sales taxes owing from March to the government on April 30. Swifty received its property tax bill for the calendar year for $70,800 on March 31, payable May 31. Swifty recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Swifty paid its employees for the week of August 15 on August 20. The gross pay was $80,000. The company deducted $4,128 for CPP, $1,312 for El, $6,500 for pension, and $16,020 for income tax from the employees' pay. Swifty 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, Swifty's legal counsel believes that the company will have to pay damages of $44,000 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.)
Swifty Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: Swifty's cash register showed the following totals at the end of the day on March 17: pre-tax sales $55,000, GST $2,750, and PST $3,850. 1. 2. 3. 4. 5. 6. 7. Swifty remitted $49,000 of sales taxes owing from March to the government on April 30. Swifty received its property tax bill for the calendar year for $70,800 on March 31, payable May 31. Swifty recorded no entries pertaining to property tax during the current year prior to the receipt of this bill. Swifty paid its employees for the week of August 15 on August 20. The gross pay was $80,000. The company deducted $4,128 for CPP, $1,312 for El, $6,500 for pension, and $16,020 for income tax from the employees' pay. Swifty 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, Swifty's legal counsel believes that the company will have to pay damages of $44,000 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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Hi,
How do i write these journal entires?
Transcribed Image Text:Swifty Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities:
Swifty's cash register showed the following totals at the end of the day on March 17: pre-tax sales $55,000, GST $2,750, and
PST $3,850.
1.
2.
3.
4.
5.
6.
7.
Swifty remitted $49,000 of sales taxes owing from March to the government on April 30.
Swifty received its property tax bill for the calendar year for $70,800 on March 31, payable May 31. Swifty recorded no
entries pertaining to property tax during the current year prior to the receipt of this bill.
Swifty paid its employees for the week of August 15 on August 20. The gross pay was $80,000. The company deducted
$4,128 for CPP, $1,312 for El, $6,500 for pension, and $16,020 for income tax from the employees' pay.
Swifty 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, Swifty's legal counsel believes that the company will have to pay damages of $44,000 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 journal entries for the transactions above. (Round answers to the nearest whole dollar, eg 5,275. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
No. Account Titles and Explanation
1.
2.
3.
3.
4.
5.
6.
7.
(To record payroll and employee deductions)
(To record employee benefits)
Debit
000000000
Credit
10000000000000
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