Question

Exercise 10-2 Chen Wholesalers Ltd. incurred the following transactions related to current liabilities: 1. Chen's cash register showed the following totals at the end of the day on March 17: pre-tax sales $52,000; GST $2,600; and PST $3,640. 2. Chen received its property tax bill for the calendar year for $48,600 on May 1, payable July 1. 3. Chen's gross payroll for the week of August 15 was $75,600. The company deducted $3,790 for CPP, $1,421 for EI, $5,900 for pension, and $16,360 for income tax from the employees' pay. The employer portions of CPP and EI for the week were $3,790 and $1,989 respectively. 4. On August 22, all amounts owing for employee income taxes, CPP, and El pertaining to the payroll in transaction 3 above were paid. 5. On October 1, Chen borrowed $100,000 from First Bank for a six-month period; 4% interest on the bank loan is payable on April 1. Your answer is partially correct. Try again. Record journal entries for the transactions above. (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.) Date Account Titles and Explanation Debit Credit Mar. 17 Sales 52000 ..... ... Sales Tax Payable 2600 Sales Tax Payable 3640 May 1 Property Tax Expense 48600

Answer 1

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Ans. Account Titles and Explanation Debit Credit Date march 17 $ 58240 Cash Al (5200 + 2600+ 3640) To Sales Revenue Al Sales Tax Payable Al (GST) PST payable Alc to record cash sales) $ 52000 $ 2600 $3640

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