a) Prepare journal entries for all transactions.

b) Prepare journal entries needed adjustments

c) Prepare an SCI for the year ended 31 December 20X8. Ignore income tax.

Shirt Shack Ltd. is a retail store operating in a downtown shopping mall. On 1 January 20X8, it reported the following SHIRT SHACK LIMITED Statement of Financial Position As of 1 January 20X8 Cash $ 3,500 24,500 1,100 39,600 17,600 Accounts receivable (net of allowance of $1,900) Prepaid rent (rental deposit) Inventory Leasehold improvements (net) Total assets $ 86,300 S 32,500 3,700 Accounts payable Accrued wages payable Accrued interest payable Accrued rent payable Notes payable, 10% Common shares Retained earnings 200 15,800 10,800 23,300 Total liabilities plus equity $ 86,300 During 20X8, the company reported the following a. Cash paid to employees (salaries and commissions), $68,000. Cash paid to suppliers' for payment of accounts payable, $91,200 (Note payables to all suppliers are for inventory purchases.) b. Cash collected on customer accounts receivable accounts, $222,800 C. On 31 December 20X8, a physical inventory count revealed that inventory was $42,600. The company uses the periodic inventory system d. At 31 December 20X8, customers owed Shirt Shack $35,500, and the company owed its suppliers for inventory purchases $14,200. Of the accounts receivable, aging analysis indicated that $4,100 was expected to be uncollectible. No accounts were written off in 20X8 e. Cash paid to landlord, $16,800 ($1,400 per month for 12 months). Shirt Shack is required to pay monthly rent and at year-end, make an additional payment to bring the total rent e made in January 20x9 f. Cash paid for miscellaneous operating expenses, $7,500 g. Cash paid in dividends, $16,000, in interest, $1,780. No interest is owing at 31 December 20X8 h. Shirt Shack owed employees $650 in wages and $2,500 in commissions at year-end i The leasehold improvements were acquired on 1 January 20X7. They had an expected life of 10 years and were installed in leased premises that had a five-year lease on 1 January 20X7 xpense up to 10% of sales. This payment will be Shirt Shack Ltd. is a retail store operating in a downtown shopping mall. On 1 January 20X8, it reported the following SHIRT SHACK LIMITED Statement of Financial Position As of 1 January 20X8 Cash $ 3,500 24,500 1,100 39,600 17,600 Accounts receivable (net of allowance of $1,900) Prepaid rent (rental deposit) Inventory Leasehold improvements (net) Total assets $ 86,300 S 32,500 3,700 Accounts payable Accrued wages payable Accrued interest payable Accrued rent payable Notes payable, 10% Common shares Retained earnings 200 15,800 10,800 23,300 Total liabilities plus equity $ 86,300 During 20X8, the company reported the following a. Cash paid to employees (salaries and commissions), $68,000. Cash paid to suppliers' for payment of accounts payable, $91,200 (Note payables to all suppliers are for inventory purchases.) b. Cash collected on customer accounts receivable accounts, $222,800 C. On 31 December 20X8, a physical inventory count revealed that inventory was $42,600. The company uses the periodic inventory system d. At 31 December 20X8, customers owed Shirt Shack $35,500, and the company owed its suppliers for inventory purchases $14,200. Of the accounts receivable, aging analysis indicated that $4,100 was expected to be uncollectible. No accounts were written off in 20X8 e. Cash paid to landlord, $16,800 ($1,400 per month for 12 months). Shirt Shack is required to pay monthly rent and at year-end, make an additional payment to bring the total rent e made in January 20x9 f. Cash paid for miscellaneous operating expenses, $7,500 g. Cash paid in dividends, $16,000, in interest, $1,780. No interest is owing at 31 December 20X8 h. Shirt Shack owed employees $650 in wages and $2,500 in commissions at year-end i The leasehold improvements were acquired on 1 January 20X7. They had an expected life of 10 years and were installed in leased premises that had a five-year lease on 1 January 20X7 xpense up to 10% of sales. This payment will be