Beauty Bath Equipment Limited $($BBEL$),$ a private company based in Ottawa and prepares its financial statements using ASPE. BBEL is the city$$s largest manufacturer and vendor of bathtubs, showers, and sinks$.$ The company sells products direct to consumers and sells wholesale to other retailers.

BBEL is owned by Frank Juul, who runs the operations side of the business. His brother, Jacky Juul, manages all the accounting functions. Frank performed market research and determined that the next step for BBEL is to expand sales to Alberta. BBEL has slowly reduced its debt load over the years, but still relies on creditors and bankers to finance its operations. BBEL went to the bank to obtain additional financing to expand to Alberta. The bank agreed to provide $$3$ million in financing at face value, at a rate of $9\%,$ interest payable annually. The bank indicated that audited financial statements would be required this year, and BBEL would need to maintain a debt to equity ratio of $1$:$1,$ where debt is defined as all liabilities.

A&F LLP is a local audit firm engaged to perform the December $31,2024$ year$-$end audit to satisfy the bank requirements. You are the senior accountant assigned to this audit engagement. It is January $2025,$ you met with Frank and Jacky and note the following transactions that occurred during the year: