4. Powell Inc. had the following transactions in the month of November 2020:

1. November 1: obtained a $50,000 line of credit with their bank and used $12,250 of this amount to pay

   outstanding accounts payable that same day. Interest is charged at 5% per annum, based upon the

   average balance outstanding during the month. Interest is paid on the last day of each month.

2. November 2: bought $15,000 of inventory on credit, terms of 30 days

3. November 5: received $7,700 from a customer for work that will be performed next month

4. November 6: Sold goods for $25,000 on which Powell had previously received a $9,000 deposit. The

   balance is due in 30 days. The cost of these goods is $16,700.

5. November 14: Sold $45,600 of goods half for cash, half for credit. The cost of these goods is $30,000.

6. November 20: Made a $12,000 payment on the line of credit

7. November 25: Received a letter from a lawyer stating that a customer is suing the company for failure to

   provide a safe working environment. Powells lawyer says that it is likely that the company will be

   required to pay and estimates that the damages will amount to $11,500.

8. November 30: Paid monthly payroll amounts to employees. Gross payroll for the month was $32,000.

   The amounts below were withheld from the employees cheques. On this same date, Powell records their liability for amounts due to the government for CPP and EI. Powell matches the employees contributions for both EI and CPP.

   i. CPP.........................$2,500 ii. EI.............................$3,900

iii. Income taxes........$7,200

Required:

Prepare the journal entries for Powell Inc. for the month of November.