Reference no: EM132892442

Question - HydroDig Construction has a December 31 year end and prepares financial statements annually. They have gathered the following information to prepare the current year's statements.

1. The payroll register showed the following total unpaid amounts as at December 31 Gross Pay EI Premiums Income Tax CPP Total Deductions Net Pay Admin Salaries Sales Salaries 7,480 166.18 2,534.67 248.19 2,949.04 4,530.96 1,600 5,880

2. Services provided to customers for the month of December were $5,000. These services are taxable and are on account and not recorded. The PST in Saskatchewan is 6% and the GST is 5%.

3. On September 1 a client paid $4,000 in advance for services from September 1 to January 31. This amount was credited to the Unearned Revenue account.

4. The power bill for December in the amount of $125 was received but is unpaid and unrecorded.

5. The company had recorded estimated income taxes each month at the rate of 27% of income before taxes. Total income before taxes for the year was $652,000. At yearend, the actual income tax expense has been determined to be $185,500. The actual amount has not been adjusted to the accounts.

REQUIRED - Using the above information, prepare the journal entries on December 31 for Campbell Construction.