Question

Question 3 On February 28, 2018, Molega Ltd.'s general ledger contained the following liability accounts: Accounts payable CPP payable $40,700 2,520 EI payable 1,198 Sales tax payable Employee income tax payable Unearned revenue 6,400 5,615 14,700 The following selected transactions occurred during the month: Mar. 2 Issued a three-month, 6% note payable in exchange for an account payable in the amount of $9,400. Interest is due at maturity. 5 Sold inventory for cash totalling $39,500, plus 13% HST. The cost of goods sold was $24,800. Molega uses a perpetual inventory system. 9 Received the property tax bill of $17,800 for the calendar year. It is payable on May 1. 12 Provided services for customers who had made advance payments of $10,170 including 13% HST, which is not payable until the related sale occurs. 13 Paid $6,400 HST to the Receiver General for sales tax collected in February. 16 Paid $9,333 to the Receiver General for amounts owing from the February payroll for employee payroll deductions of $7,374 (CPP $1,260, EI $499, and employee income tax $5,615) and for employee benefits of $1,959 (CPP $1,260, and EI $699). 27 Paid $28,900 to trade creditors on account. 31 Paid employees for the month. Gross salaries totalled $16,000 and payroll deductions included CPP of $863, EI of $301, and employee income tax of $6,370. Employee benefits included CPP of $863 and EI of $421.

Answer 1

Answer- journal entries

Date	Account Title and Explanation	Debit	Credit
Mar.9	Property tax expense	$8,900
	Property tax payable		$8,900
Mar.12	Unearned revenue	$10,170
	Service revenue ($10,170/113*100)		$9,000
	Sales tax payable ($10,170/113*13)		$1,170