Alina Kirigan Ltd is a small wholesale business selling premium children toys. The balance sheet at the end of December 2020 is shown below.

Alina Kirigan Ltd Balance Sheet as at 31 December, 2020

Assets		Liabilities & Owners Equity
Current Assets:		Current Liabilities:
Cash	$76,000	Accounts Payable	$18,000
Accounts Receivable	$28,000
Inventory	$30,000
Non-current Assets:		Non-current Liabilities:
Office equipment Cost	$7,000	Bank Loan	$40,000
Less Accumulated Depreciation	($2,000)
Office equipment Net	$5,000	Owners Equity:
		Share Capital	$50,000
		Retained Earnings	$31,000
Total Assets	$139,000	Total Liab & OE	$ 139,000

Required:

1. Transactions for January 2021 are given below (ignore taxes). Prepare journal entries to account for these transactions, and indicate the impact on the Cash Flow Statement if there is any. The first transaction is done for you in the template as an example.

(18 marks)

1. 1 January, collected $10,000 cash from accounts receivable.
2. 1 January, prepaid rent $15,000 for the next 6 months.
3. 2 January, purchased a new piece of office equipment for $2,500 cash.
4. 2 January, borrowed $25,000 from the bank, to be repaid 2 years later.
5. 5 January, paid $8,000 of accounts payable, which related to inventory purchased in 2020.
6. 7 January, sold $20,000 worth of inventory for $45,000 cash.
7. 8 January, purchased $18,000 of inventory on credit, which is payable in February 2021.
8. 20 January, paid employee monthly salary of $12,000.
9. 22 January, a customer ordered some toys and paid a deposit of $3,000. The delivery of the order will take place in February 2021.
10. 28 January, paid other expenses $1,200 including power, water, internet and phone, for the month.
11. 29 January, sold $15,000 worth of inventory for $34,000 on credit, receivable in March 2021.

(xii) 31 January, the following adjustments needed to be recorded:

• Accrued interest expense $350 for the month of January, which is payable in February 2021.
• Depreciation expense $400 for office equipment in January.
• Rental expense for the month of January.

Transactions for January 2021 are given below (ignore taxes). Prepare journal entries to account for these transactions, and indicate the impact on the Cash Flow Statement if there is any. The first transaction is done for you in the template as an example. Please do the rest (ii ~xi)

	Date	Dr	Cr	Dr $	Cr $	Note:
(i)	1-Jan	Dr Cash		10,000		Cash inflow from operating
			Cr Accounts Receivable		10,000