Question

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 recorded no entries pertaining to property tax during the current year prior to the receipt of this bill.
4.		Sunland paid its employees for the week of August 15 on August 20. The gross pay was $80,000. The company deducted $4,128 for CPP, $1,312 for EI, $6,100 for pension, and $16,020 for income tax from the employees’ pay.
5.		Sunland recorded the employer portions of CPP and EI for the week of August 15 on August 20 for $4,128 and $1,837, respectively.
6.		On September 15, all amounts owing for employee income taxes, CPP, and EI pertaining to the payroll transactions above were paid.
7.		On December 31, Sunland’s legal counsel believes that the company will have to pay damages of $40,000 next year to a local utility company for failing to pay it on time during the current year.
		(Hint: This will affect the Utilities Expense account.)

Record journal entries for the transactions above. (Round answers to the nearest whole dollar, e.g. 5,275. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

Date	Account Titles and Explanation	Debit	Credit
	(To record payroll and employee deductions)
	(To record employee benefits)

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Mar. 17	Cash	64960
	Sales		58000
	Sales tax payable ($2900 + $4060)		6960
Apr. 30	Sales tax payable	49000
	Cash		49000
Mar. 31	Property tax expense	78000
	Property tax payable		78000
May 31	Property tax payable	78000
	Cash		78000
Aug. 20	Salaries expense	80000
	CPP Payable		4128
	EI payable		1312
	Pension payable		6100
	Employee income tax payable		16020
	Cash		52440
	(To record payroll and employee deductions)
Aug. 20	Payroll tax expense	5965
	CPP Payable		4128
	EI payable		1837
	(To record employee benefits)
Sep. 15	Employee income tax payable	16020
	CPP Payable ($4128 + $4128)	8256
	EI payable ($1312 + $1837)	3149
	Cash		27425
Dec. 31	Utilities expense	40000
	Utilities payable/Accounts payable		40000

Kindly use appropriate account titles as required since no list of accounts has been provided with the question. For any clarifications, write under comments.