Joans Golf Shoppe had the following transactions. Part A Required: Journalize each transaction at December...
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Joans Golf Shoppe had the following transactions. Part A Required: Journalize each transaction at December 31, the companys year end. (1) The company ordered golfing inventories from a supplier for $546,400. The inventory was ordered and received on credit. During the year, $523,500 was paid to the supplier. (2) Joan offered her customers a one-year warranty on golf clubs. She estimated that warranty costs would total 2% of sales. Sales for the year were $2,108,200. During the year, she actually used repair parts worth $39,240 to replace faulty golf clubs under warranty. (3) Joan has four employees involved in sales and one involved in accounting and marketing. During the year, they earned total gross wages of $145,000. From this amount Joan deducted 27% for income tax, 4.7% for Canada Pension deductions, and 2.2% for Employment Insurance contributions before giving the cheques to her staff. As an employer she was required to make matching contributions for Canada Pension and 1.4 times the employee contribution for Employment Insurance on behalf of her employees. Employee benefits are accrued at year end.
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