Question

On January 1, 2020, Concord Inc.’s general ledger had these liability accounts:

CPP contributions payable		$ 2,138
EI premiums payable		1,023
HST payable		11,342
Employee income tax deductions payable		4,591
Unearned revenue		15,200

In addition, Concord had a balance in HST Receivable of $4,200 at January 1, 2020. Concord uses a periodic inventory system, operates in the Province of Ontario where HST is 13% and follows ASPE. Concord’s required premium for EI is 1.4 times the employee premium; for CPP, it is 1.0 times the employee contribution.

In January 2021, the following transactions occurred:

Jan. 5		Sold merchandise for $16,100 cash, plus HST.
12		Provided services for customers who had previously made advance payments of $7,345.
14		Paid the Receiver General for Canada HST invoiced in December 2019.
15		Paid the Receiver General for Canada for amounts owing from the December payroll for CPP, EI, and income tax.
20		Purchased equipment on account for $5,989 taxes included.
31		Recorded and paid the monthly payroll. Gross salaries were $25,453. Amounts withheld include CPP of $1,195, EI of $470, and income tax of $4,591.
31		Recorded employee benefits, which include CPP, EI.

Prepare all the journal entries necessary to record the transactions noted above as they occurred

1. (To record cash sales plus HST)
2. (To record service revenue for cash previously received)
3. (Remitted HST payable)
4. (Remitted payroll deduction)
5. (To record purchase of equipment on account)     
6. (To record payment of monthly payroll)       
7. (To record employer benefits expense)

Answer 1

Journal Entries In the books of Concord
Date	Particulars	Debit (in $)	Credit (in $)
Jan-05	Cash a/c                    Dr	18,193
	To Sales a/c		16,100
	To HST payable		2,093
	(Being sales recorded with 13% HST)
Jan-12	Advance receipt a/c        Dr	7,345
	To service revenue a/c	7,345
	(Being service revenue recorded for cash previously received)
Jan-14	HST Payable a/c             Dr	11,342
	To cash		11,342
	(Being remitted HST payable in december )
Jan-15	CPP contributions payable a/c   Dr	2,138
	EI premiums payable                     Dr	1,023
	Income tax payable                        Dr	4,591
	To Cash a/c		7,752
	(Being remittance of Cpp contributions,Ei premiums,Income tax)
Jan-20	Equipment a/c           Dr (5,989/113%)	5,300
	Input on HST a/c       Dr (5989/113%)*13%	689
	To Cash a/c		5,989
	(Being purchase of equipment)
Jan-31	Salary a/c                Dr
	To salary payable
	(Bing salary due to employees)
	Salary payable a/c      Dr	19,197
	To   Cash		19,197
	(Being net salary paid after employer benefit expenses
Jan-31	Salary payable a/c    Dr	6,256
	To CPP contributions payable	1,195
	To EI Premiums payable		470
	To Income tax payable		4,591
	(Being contributions made towars CPP,EI,Income tax)