Question

I NEED URGENT HELP PLEASE, MY ASSIGNMENT IS DUE IN HALF AN HOUR. THANK YOU IN ADVANCE!!

Chuck's Landscaping Ltd. (CLL) had the following transactions involving current liabilities in its first year of operations: 1. CLL signs contracts with customers and requests 50% of the contract price as a deposit at the time of signing. CLL had three contracts totalling $140,000 in which the work had not started. 2. CLL has five employees, who earn gross wages of $370,000 for the year. From this, the company deducted 20% for income taxes, $18,315 in CPP premiums, and $6,031 in El premiums before distributing the chequesto the staff. As an employer. CLL was also required to match the employees' CPP premiums and pay $8.443 in El premiums. CLL had fallen behind in making payments owing to the government. The last two months of the year were still outstanding (that is, 2/12). 3. CLL ordered sod from one supplier during the year. The supplier provided credit to CLL, and at the end of the year CLL owed $44,000 on total purchases of $352.000, 4. CLL also sells gift cards that can be used to buy plants at the company's greenhouse. During the year, the company sold $53,000 in gift cards. Prepare journal entries to record the transactions. (Enter debit entries first followed by credit entries. Credit account titles are automatically Indented when the amount is entered. Do not Indent manually. If no entry is required, select "No entry"for the account titles and enter for the amounts. Round answers to O decimal places, eg 14,674) No.Account and explanation Debit 1. 2. (To record wages payable to employees) (To record employer's liabilities) (To record payment to the government) 3. (To record purchase (To record payment) 4.

Answer 1

A B с D E 14 15 Date Debit Credit 16 1 $70,000 17 $70,000 18 19 2 $370,000 20 $74,000 21 $18,315 22 $6,031 $271,654 23 24 Account Titles and Explanation Cash (140000*50%) Unearned revenue (To record receipt of advance) Wages expense Income tax payable (370000*20%) CPP premium payable El premium payable Cash (balancing figure) (To record wages payable to employees) CPP premium expenses El premium expenses CPP premium payable El premium payable (To record employer liability) Income tax payable (74000*10/12) CPP premium payable (18315+18315)*10/12) El premium payable (6031+8443)*10/12) Cash (To record the payment to Government) 25 $18,315 $8,443 26 27 $18,315 $8,443 28 29 30 $61,667 $30,525 31 32 $12,062 33 $104,253 34

35 3 $352,000 36 $352,000 37 38 $308,000 39 Purchases Accounts payable (To record purchases) Accounts payable (352000-44000)) Cash (To record payment) Cash Gift card liability (To record the sale of gift card) $308,000 40 41 4 42 $53,000 43 $53,000 44 45 46 47 48 49 50 Current liabilities: Unearned revenue CPP payable EI payable Income tax payable Accounts payable Gift cards outstanding Total current liabilities 51 $70,000 $6,105 $2,412 $12,333 $44,000 $53,000 S187,851 52 53 54