Reference no: EM132505274

The following are selected transactions of Swifty Department Store Ltd. for the current year ended December 31.

• Swifty is a private company operating in the where is PST 8% and GST is 5%. follows ASPE and has a periodic inventory system 1. On February placed an order to buy goods for resale from Hashmani Limited for $42,000 plus GST. Terms of purchase are to.b.destination 15. The goods February 6 the invoice paid on February Inventory for resale is purchased PST .) On April 1. Swifty purchased a truck for $42,000 from Schuler Motors Limited, paying $9,660 cash and signing a one year, 8% note for the balance of the purchase price. Provincial sales tax of 8% and GST of 5% were charged by the supplier on the purchase price On May 1Swifty borrowed $73,000 from First Provincial Bank by signing a $82,900 noninterest-bearing note due one year from May 1 4.
• On June 30 and December 31. Swifty remitted cheques for $19.900 each as instalments on its current year tax liability On August 14 Swifty's board of directors declared a $20,000 cash dividend that was payable on September 10 to shareholders of record on August 31 6. On December Swifty received $1,700 from Jefferson Ltd. a deposit on a trailer that Jefferson is using for an office move.
• The deposit is to be returned to Jefferson after it returns the trailer in good condition on January 15.(Hint: Use the account Refund Liability) On December 10, Swifty purchased new furniture and fixtures for $12,000 on account. Provincial sales tax of 8% and GST of 5% were charged by the supplier on the purchase price 8. During December, cash sales of $81.000 were recordedplus 8% provincial sales tax and 5% GST that must be remitted by the 15th day of the following month. Both taxes are levied on the sale amount to the customer Ignore any cost of goods sold.
• Swifty's lease for its store premises calls for a $3,100 monthly rental payment plus 3% of net sales. The payment is due one week after month end. 10. Swifty was advised during the month of December that it is legally required to restore the area considered a land improvement) surrounding one of its new store parking lots, when the store is closed in 12 years. Swifty estimates that the fair value of this obligation at December 31 is $92,000 11. The corporate tax retum indicated taxable income of \$205, income tax rate is 20%

Question 1: Prepare the journal entries necessary to record the above transactions when they occurred and any adjusting journal entries relative to the transactions that would be required to present financial statements at December 31 in accordance with GAAP (Credit account titles are automatically Indented when the amount entered . Do not Indent manually. If no entry is required, select No Entry for the account titles and enter for the amounts.)