Accounting cycle review ACR$5\mathrm{.}1($LO $2,3,4)$ ACR$5\mathrm{.}1($LO $2,3,4)($Record and post general, adjusting, and closing entries; prepare trial balances and financial statements.$)$ Heritage Furniture Limited reports the following information for $11$ months of the year in its February $28,2024,$ trial balance. The company$$s year end is March $31.$HERITAGE FURNITURE LIMITEDTrial BalanceFebruary $28,2024$Debit$$Credit$$Cash$$65,000$Accounts receivable$350,000$Inventory$2,750,000$Supplies$7,500$Prepaid rent$5,000$Equipment$145,000$Accumulated depreciation$$equipment$$29,000$Accounts payable$1,550,000$Deferred revenue$35,000$Bank loan payable$450,000$Common shares$200,000$Retained earnings$550,500$Dividends declared$50,000$Sales$5,307,400$Cost of goods sold$3,843,900$Advertising expense$75,000$Freight out$180,000$Office expense$26,000$Rent expense$55,000$Salaries expense$360,000$Travel expense$12,500$Utilities expense$20,000$Interest expense$27,000$Income tax expense$150,000$$$8,121,900$$$8,121,900$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 $$200,000.$ No returns were anticipated related to this sale.$7$Returned scratched merchandise to the supplier from the March $5$ purchase, $$25,000.8$The appropriate company paid freight for the March $5$ purchase, $$7,500.9$Sold $$200,000$ of merchandise on account, terms n$/30,$ FOB destination. The cost of goods sold was $$140,000.$ Management estimated that sales returns will be $12\%$ of sales.$9$The appropriate company paid freight for the March $9$ sale, $$5,000\mathrm{.}12$Ordered custom merchandise for a local designer totalling $$50,000.$ Received $$12,500$ as an advance payment$\mathrm{.}13$Accepted returned merchandise from the sale on March $9,$ $$20,000.$ The cost of the goods returned to inventory was $$14,000\mathrm{.}14$Paid for the merchandise purchased on March $5,$ net of merchandise returns on March $7\mathrm{.}16$Paid salaries of $$45,000\mathrm{.}20$Recorded cash sales, $$255,000.$ The cost of goods sold for these sales was $$179,000.$ No returns were anticipated related to these sales$\mathrm{.}27$Paid salaries, $$50,000\mathrm{.}29$Received payment of merchandise sold on March $9,$ net of merchandise returns on March $13\mathrm{.}30$Paid rent, $$5,000.$Adjustment and additional data:Accrued $$10,000$ for utilities, $$10,000$ for salaries, and $$9,000$ for interest on the bank loan.Recorded depreciation on equipment, which has an expected useful life of $10$ years.Recorded an additional $$50,000$ of income tax payable.Common shares were issued during the year for $$1,000.$$$45,000$ of the bank loan is due to be repaid in the next year.InstructionsRecord the March transactions.Set up T accounts, enter the opening balances, and post the transactions recorded in part $($a$).$Prepare a trial balance as at March $31.$Record and post adjusting entries for the year ended March $31,$ assuming adjusting entries are made annually.Prepare an adjusted trial balance as at March $31.$Prepare a multiple$-$step statement of income, statement of changes in equity, and statement of financial position for the year.Prepare and post closing entries.Prepare a post$-$closing trial balance as at March $31.$