Question

Designer Architects had the following additional information at its November 30, 2017 year-end: a. The Uneamed Revenue acount showed a balance of $74,000, which represented four months of services paid in advance by a client for services beginning on October 15, 2017 b. The payroll register showed the following unpaid amounts as at November 30 Premium Taxes 1.410.00 CPP 303.98 Total Deductions .914,39 Net Payable 4,785.61 Olice Salaries ,700.00 1 3 Sales 3.000.00 These values are based on assumed pool deductions The employer's portions of El and CPP are 14 times and 1 times the employees' portion respectively, C. The November utility bill in the amount of $3.300.00 was unpaid and unrecorded at November 30,

Answer 1

Date	General Journal	Debit	Credit
Nov 30, 2017	Unearned revenue	27750.00
	Service revenue ($74000 x 1.5/4)		27750.00
	(To record the revenue earned)
Nov 30, 2017	Office salaries expense	3700.00
	Sales salaries expense	3000.00
	EI payable		200.41
	Income taxes payable		1410.00
	CPP payable		303.98
	Salaries payable		4785.61
	(To record the accrued payroll)
Nov 30, 2017	Payroll taxes expense	584.55
	EI payable (1.4 x $200.41)		280.57
	CPP payable		303.98
	(To record the employer's portion of EI and CPP)
Nov 30, 2017	Utilities expense	3360.00
	Utilities payable/Accounts payable		3360.00
	(To record the accrued utilities)

Analysis Component:

Description	Effect	Amount
The income statement would be	Understated	17105.45
On the balance sheet liabilities would be	Overstated	17105.45
On the balance sheet equity would be	Understated	17105.45
On the balance sheet assets would be	No Effect	0

Working:

Transaction	Income Statement	Balance Sheet
		Liabilities	Equity	Assets
1	-27750	27750	-27750	NE
2	6700	-6700	6700	NE
3	584.55	-584.55	584.55	NE
4	3360	-3360	3360	NE
Total effect $	-17105.45	17105.45	-17105.5	NE

Note: Positive amounts denote overstatement and negative amounts denote understatement.