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Question: shamsud ltd operates on a calendaryear basis at the beginning...

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Shamsud Ltd. operates on a calendar-year basis. At the beginning of Dec 2016, the company had the following current liabilities on its books:

Acc Payable: $85,000
Rent payable: 10,000
Warranty provision: 12,000
Unearned revenue: 14,000

In December, the following events occurred: $28,000, payable on January 15, 1. Shamsud purchased a new computer system on account at a cost of the 2017. In addition to $4,000 was paid in cash to have the new system installed and customized to this, companys requirements. account and made payments of $86,000 to its suppliers. 2. The company purchased inventory for $93,000 on payment that should have been The rent that was payable at the beginning of December represented the and made in November. In December, Shamsud paid the past rent owed, as well as the rent for December January. revenue that was received in advance from 4. By December 31, the company had earned $5,000 of the service Customers. per day. Three work days elapsed between the last payday 5. Shamsuds employees are paid a total of $2,000 and EI.) and the end of the fiscal year. (gnore deductions for income tax, cPP, 6. The companys products are sold with a two-year warranty. Shamsud estimates its warranty expense for the year (not previously recorded) as $16,000. During December, it paid $1,200 in warranty claims. Required: record the December transactions and adjustments. (Ignore the amounts that a. Prepare the journal entries to the company pays for its share of CPP and EI) on December 31, 2016 Prepare the current liability section of Shamsuds statement of financial position b.

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