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Fancy has just completed its first quarter of operations. Below are transactions that have not yet been recorded. Prepare the journal entries listed below.
Jan 1 Jan 15
Mar 1 Apr 1
Apr 15 Apr 29
Jun 1
Pre-tax cash sales amounted to $75,000. HST is collected on all sales at a rate of 13%.
Signed a three month note for $12,000 to extend amounts owing on account to Threads Inc. Interest is 6% annually and due at maturity.
Received the annual property tax bill for $7,500 payable on June 1.
Paid salaries of $10,000; of this amount $495 is CPP, $178 is EI and $3,465 is for income taxes (record the employer portion as well).
Paid the note due.
A customer sued Fancy for $200,000. Legal counsel has advised that it is unlikely damages will be awarded.
Paid the property taxes bill in full.
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