Chapter 4
Current Liabilities
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d) Prepare the journal entry on February 1, 2016 to pay the employee his net pay.
Date
Account Title and Explanation
Debit
Credit
e) Prepare the journal entry on February 15, 2016 to remit all the payroll deductions to
the CRA.
Date
Account Title and Explanation
Debit
Credit
AP-4B (
7
)
On May 1, 2016, Verico Company borrowed $98,000 from the local bank. The loan is payable in
equal installments over five years.
Required
a) Write the journal entry to record the loan.
Date
Account Title and Explanation
Debit
Credit
b) How much of the loan would be considered non-current on May 1, 2016?
