Question

In: Accounting

Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020...

Lyrtricks Ltd., which has a December 31 year end, had the following transactions in December 2020 and January 2021:

2020

Dec. 1

 The company borrowed $170,000 from a bank on a five-year loan payable. The terms of the loan stipulate that Lyrtricks must repay 1/5 of the principal every November 30 plus the interest accrued to that date. The loan bears interest at 9% per annum.

Dec. 31

 Recorded employee wages for December. The wages earned by employees amounted to $10,900, and the company withheld CPP of $628, EI of $530, and income taxes of $2,000. Lyrtricks’ employer contributions were $628 for CPP and $742 for EI.

Dec. 31

 Recorded the adjusting entry to record the interest incurred on the bank loan during December.

Dec. 31

 Recorded the entry to reclassify the current portion of the bank loan.
2021

Jan. 2

 Paid the wages recorded on December 31.

Jan. 15

Made the remittance to the government related to the December 31 payroll.

Prepare all necessary journal entries related to the above transactions.

2020...

Dec. 1

Dec. 31-- to record wages payable

Dec. 31 -- to record employer's liabilities

Dec 31. -- to record interest

Dec. 31 -- to record reclassification of current portion of bank loan

2021...

Jan. 2

Jan. 15

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Sunland Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related...
Sunland Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: 1. Sunland’s cash register showed the following totals at the end of the day on March 17: pre-tax sales $58,000, GST $2,900, and PST $4,060. 2. Sunland remitted $49,000 of sales taxes owing from March to the government on April 30. 3. Sunland received its property tax bill for the calendar year for $78,000 on March 31, payable May 31. Sunland...
Sunland Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related...
Sunland Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions related to current liabilities: 1. Sunland’s cash register showed the following totals at the end of the day on March 17: pre-tax sales $58,000, GST $2,900, and PST $4,060. 2. Sunland remitted $49,000 of sales taxes owing from March to the government on April 30. 3. Sunland received its property tax bill for the calendar year for $78,000 on March 31, payable May 31. Sunland...
Kent Enterprises had the following transactions relating to year-end liabilities (assume a December 31 year-end): The...
Kent Enterprises had the following transactions relating to year-end liabilities (assume a December 31 year-end): The company borrowed $50,000 on August The note was for one-year and the interest rate was 5.50% The company recorded December sales of $24,675. The sales tax rate was 8.25%. The company received $18,000 on November 1 in advance of performing the service. The service was to be performed evenly over the next 12 months. The company recorded sales of $412,095. Warranty claims are estimated...
For the year ended December 31, 2018, Carla Vista Ltd. had the following transactions related to...
For the year ended December 31, 2018, Carla Vista Ltd. had the following transactions related to the purchase of property. Assume all transactions are for cash unless otherwise stated. Feb. 7 Purchased real estate for $ 1 million, paying $ 292,700 cash and signing a mortgage payable for the balance. The site had an old building on it and the current values of the land and building were $ 0.9 million and $ 101,400, respectively. The old building will be...
Gibco Limited has an October 31 year end. On October 1, 2020 Gibco had the following...
Gibco Limited has an October 31 year end. On October 1, 2020 Gibco had the following current liabilities listed on its books: Bank credit line ................................................ $23,250 Accounts payable ............................................. 100,500 CPP, EI and income tax payable ...................... 9,620 Unearned revenues ........................................... 12,000 During October 2020 Gibco engaged in the following transactions: Oct 1 Paid $20,000 on the line of credit with their bank to replace the bank overdraft. Oct 5 Sold goods worth $30,000 on which they had previously...
Carla Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2020 December...
Carla Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2020 December 31, 2021 Ending inventory $9,400 understated $7,900 overstated Depreciation expense $2,200 understated — An insurance premium of $64,800 was prepaid in 2020 covering the years 2020, 2021, and 2022. The entire amount was charged to expense in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for $16,300 cash, but the entry was not recorded until 2022. There were no other...
Indigo Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2020 December...
Indigo Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2020 December 31, 2021 Ending inventory $10,300 understated $7,300 overstated Depreciation expense $2,500 understated — An insurance premium of $63,300 was prepaid in 2020 covering the years 2020, 2021, and 2022. The entire amount was charged to expense in 2020. In addition, on December 31, 2021, fully depreciated machinery was sold for $14,800 cash, but the entry was not recorded until 2022. There were no other...
Fresh Ltd. (Fresh) manufactures organic fruit drinks and its year end is December 31, 2020. You...
Fresh Ltd. (Fresh) manufactures organic fruit drinks and its year end is December 31, 2020. You are an audit manager of Lea & Bettiol CPAs and are currently planning the audit of Fresh. You attended the planning meeting with the audit engagement partner and CFO last week and made the following notes: Notes of planning meeting for Fresh Fresh’s sales have been strong and the company is forecasting revenue of $40 million this year, which is a 25% increase over...
First Shot Photography Store has the following trial balance at their year-end, December 31, 2020. First...
First Shot Photography Store has the following trial balance at their year-end, December 31, 2020. First Shot Photography Store Trial Balance For the year ended December 31, 2020 Account Debit Credit Accounts Payable $40,000 Accounts receivable $85,000 Accumulated amortization, office equipment 10,000 Accumulated amortization, store cash register 3,000 Advertising expense 3,500 Amortization expense, office equipment 17,000 Amortization expense, store cash register 7,000 Sales Discounts 1,800 Cash 14,000 Cost of goods sold 216,900 Equipment 115,000 Insurance expense 7,500 Interest expense 1,400...
Grace Inc. has a December 31 year end. Grace had not received their December 2018 bill...
Grace Inc. has a December 31 year end. Grace had not received their December 2018 bill for their holiday party. Grace will accrue the estimated $5,000 cost at December 31, 2018. On January 28, 2019 ,after the financial statements were released, the final bill was received for the party of $5,250 and paid. 1) Complete the journal entries required relating to Grace Inc.at the below dates (if needed) assuming Grace does not use reversing entries: a) Dec 31, 2018 -...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT