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Purchased supplies of $3,000 on account from Jimmy Printing and Stationery Limited.

Paid cash to acquired 30,000 shares of its own at $2.2 each. ITI intends to keep the shares for several months for management bonus. The seller of the shares still entitles the share dividend declared on 2 March, the right of receiving the share dividend is not sold to ITI.

Received credit memorandum of $1,800 from Esorbma Limited for goods purchased in March due to discrepancy in the color.

Granted Vinga Limited an allowance of $980 (original price $1,000 trade discount $20) due to discrepancy in the color of the ride on cars.

Sold flying disc and toy swings to Action Limited, list price of $140,000 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid freight-charges of $500. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March.

Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of $220,000 on account for the purchase on 27 February 2021. Purchases terms with Esorbma Limited in February was 2/10, n/30, FOB shipping point.

Paid $180,000 for salary up to 9th March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. The employees receive a total salary of $45,000 for a five-day work week.

Received payments from Vinga Limited, for the March sales.

Acquired $160,000 packing equipment by signing a 90-day, 5% notes payable. ITI started to use the equipment in April.

Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $220,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 45-day notes from the customer to settle the outstanding balance.

Share dividends were distributed. Shareholders on the register of the company on 6 March 2021 are entitled to receive the dividend shares.

Paid all cash dividends declared previously.

Received from Tom Limited, $180,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2021 to 31 March 2022.

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27. 27 Returned $40,000 consignment goods to Consignee Trading Limited. The goods are delivered by Consignee Trading Limited to ITI for consignment purpose in February 2021.

28. 28 Purchased $25,000 play mats from Millan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2021.

29. 29 A cash dividend was declared for preference shares and a cash dividend of $0.02 per share was declared for ordinary shares. The dividends will be paid in April.

30. 30 Received a check of $14,000 from the liquidator of YOT Limited. The liquidator issued a revised statement to inform ITI that $14,000 is the finalized amount for the settlement of the $16,000 outstanding balance.

    The following additional information is available on 31 March 2021:

1. (a) Electricity incurred for the month amounted to $8,000.

2. (b) The employees receive a total salary of $45,000 for a five-day work week. All employees worked for the whole month of March.

3. (c) (i)Building, (ii) equipment and (iii) motor vehicles are recorded at historical cost and their estimated useful lives are 40 years, 5 years and 5 years respectively. No residual value is expected for the building. The building was acquired on 1 May 2017. The company uses straight-line method for all buildings. All the equipment and motor vehicles are acquired on 1 January

2018. The company uses unit of activity method to depreciate equipment and the double-declining balance method to depreciate all motor vehicles. The company expects that the salvage value of the equipment and motor vehicles is 10 % of the purchase cost. The equipment is for packing and the total amount of packing for 5 years are estimated to be 594,000 units. The total packing in March amounted to 9,700 units. Annual depreciation is calculated for each year from 1 January to 31 December, monthly depreciation is equal to (annual depreciation / 12).

4. (d) Physical count showed that $5,000 of supplies and $796,000 of merchandise inventory remained on hand at 31 March 2021.

5. (e) The bank statement balance is $50 greater than the cash account balance.

   This is relating to the interest earned for the cash balance in the bank account for March.

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6. (f) The prepaid insurance was paid in last December covering a 12-month general insurance from December 2020 to November, 2021.

7. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down turn of the economy.

8. (h) Recognize interest expense for the month.

9. (i) Recognize interest revenue for the month.