Heritage Furniture Limited reports the following information for 11 months of the year in its February 28, 2018, trial balance. The company's yearend is March 31.

Heritage Furniture incurred the following transactions for the month of March. The company uses a perpetual inventory system.
Mar. 1 Received $125,000 on account from a major customer.
2 Paid a supplier an amount owing of $200,000, taking the full discount, terms 2/10, n/30.
5 Purchased merchandise from a supplier, $300,000, terms 2/10, n/30, FOB destination.
6 Recorded cash sales, $285,000. The cost of goods sold for these sales was $200,000.
7 Returned scratched merchandise to the supplier from the March 5 purchase, $25,000.
8 The appropriate company paid freight for the March 5 purchase, $7,500.
9 Sold $200,000 of merchandise on account, terms 2/10, n/30, FOB destination. The cost of goods sold was $140,000.
9 The appropriate company paid freight for the March 9 sale, $5,000.
12 Ordered custom merchandise for a local designer totalling $50,000. Received $12,500 as a deposit.
13 Accepted returned merchandise from the sale on March 9, $20,000. The cost of the goods returned to inventory was $14,000.
14 Paid for the merchandise purchased on March 5, net of merchandise returns on March 7.
16 Paid salaries of $45,000.
19 Received payment of merchandise sold on March 9, net of merchandise returns on March 13.
20 Recorded cash sales, $255,000. The cost of goods sold for these sales was $179,000.
27 Paid salaries of $50,000.
30 Paid rent, $5,000.
Adjustment and additional data:
1. Accrued $10,000 for utilities, $10,000 for salaries, and $9,000 for interest on the bank loan.
2. Recorded depreciation on equipment, which has an expected useful life of 10 years.
3. Recorded an additional $50,000 of income tax payable.
4. Common shares of $1,000 were issued during the year.
5. $45,000 of the bank loan is due to be repaid in the next year.
Instructions
(a) Record the March transactions.
(b) Set up T accounts, enter the opening balances, and post the transactions recorded in part (a).
(c) Prepare a trial balance as at March 31.
(d) Record and post adjusting entries for the year ended March 31, assuming adjusting entries are made annually.
(e) Prepare an adjusted trial balance as at March 31.
(f) Prepare a multiple-step income statement, statement of changes in equity, and statement of financial position for the year.
(g) Prepare and post closing entries.
(h) Prepare a post-closing trial balance as at March 31.

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HERITAGE FURNITURE LIMITED Trial Balance February 28, 2018 Debit Credit Cash Accounts receivable Inventory Supplies Prepaid rent Equipment Accumulated depreciation-equipment Accounts payable Unearned revenue Bank loan payable Common shares Retained earnings $65,ooo 350,00O 2,750,000 7,500 5,000 145,000 $ 29,0oo 1,550,000 35,000 450,000 200,00O 550,500o Dividends declared Sales Sales returns and allowances Sales discounts Cost of goods sold Advertising expense Freight out Office expense Rent expense Salaries expense Travel expense Utilities expense Interest expense Income tax expense $50,000 5,479,40o 107,000 65,000 3,843,90o 75,000 180,000 26,000 55,000 360,000 12,500 20,000 27,000 150,000 $8,293,900 $8,293,900