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Aquarium World Ltd. (AWL) was incorporated in 2017 and imports fish tanks and related supplies for the saltwater aquarium market. AWL primarily imports from Asian

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Aquarium World Ltd. (AWL) was incorporated in 2017 and imports fish tanks and related supplies for the saltwater aquarium market. AWL primarily imports from Asian suppliers and is a wholesaler supplying independent retailers in Western Canada. During the month of January 2020, AWL had the following transactions: Regular entries: Jan. 1 In order to better service its growing business and manage its imventory more effectively, AWL purchased new computer equipment to run its itwentory system for $133,000, paying cash. AWL's management determined that the new computer equipment would have a usefullife of 5 years and have a residual value of $10,000 : 1 AWL also entered into an agreement to lease a warehouse. This would allow the company to import larger shipments from its Asian suppliers and reduce the impact of the long shipping times. In accordance with the lease terms. AWL paid $9,600, which represented the first six months' rent in advance. 13 A major hotel contacted AWL about supplying it with an 8-metre saltwater aquarium for the lobby. AWL agreed to this and received a \$47,000 payment from the hotel. AWL ordered the tank the same diy and it was scheduled to arrive on February 25. AWL has guaranteed that it will be installed before the end of February. 14 AWL paid its employees $8,000 for wages earned during the first two weeks of January 15. AWL's board of directors declared dividends in the amount of $16,000, which will be paid on February 15 . 19 AWL made sales totalling $62,000. Of this, half was cash and the balance was on account. The cost to AWL of the products sold was $31,000. Adjusting entries: Jan. 31 The company recorded the $8,000 in wages earned by employees during the last two wecks of the month. These wages will be paid on February 1,2020. 31 AWL recorded the adjustingentry to depreciate the new computer equipment. 31 AWL recorded the adjusting entry for the warehouse lease. Prepare the journal entries and adjusting entries for the above transactions. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter 0 for the amounts.) (To record purchase of equipment) (To record poyment of rent) Jan. 19 (To record sale of goods) (To record the cost) Adjusting entries: (To record wages earned by employees) (To record depreciation) (To record wages earned by employees) (To record depreciation) (To record warehouse lease) cTextbook and Media

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