Clinton Convenience Store Ltd. is a small retailer operated by a number of shareholders from a First Nations community. It reports under IFRS at the request of the creditor holding the note payable. The company's post-closing trial balance at December 31, 2020, the end of its fiscal year, is presented below: CLINTON Convenience Store LTD. Post-Closing Trial Balance December 31, 2020 Credit Debit $6.150 Cash 147,600 $9.840 73,800 1,230 Accounts receivable Allowance for doubtful accounts Inventory Estimated inventory returns Prepaid insurance Equipment Accumulated depreciation Accounts payable Employee income tax payable 14,760 221,400 98,400 83,640 8,364 CPP payable 3,936 El payable 1476 3,690 Refund liability Dividends payable Notes payable (due 2023) Common shares 6,150 147,600 61.500 Retained earnings 40,344 $464 940 $464 940 The company had the following transactions during January 2021. When recording these transactions, use the item number listed instead of the date. The company records adjusting entries on a monthly basis. 1 2 3. 4 5 Paid off accounts payable of $67.650. Purchased inventory costing S33 210 on credit. Sold inventory that cost $36.900 on credit for $125.460. However, $2.460 of the amount sold is expected to be refunded due to returns and the cost of the inventory expected to be returned is $984. Collected accounts receivable amounting to $134.070 Wrote off $6,150 of uncollectible accounts receivable Received inventory returns from customers and reduced accounts receivable from these customers for $3.444. The inventory that these customers returned was in excellent condition and had a cost of $1.107. Paid all salary-related liabilities outstanding at the beginning of January Paid salaries to employees, who earned a total of $49 200 of gross pay less employee income tax CPP and El of $8,856 $2,509, and $797, respectively. Withholdings will be remitted in February Recorded employee benefits expense relating to the employer's share of CPP of $2.509 and El of $1.116. Paid rent of $11.070 6. 7. 8. 19. 10 11. Pald dividends owing on payment date at the beginning of the month Expired $1,230 of prepaid insurance 12 13 Paid monthly interest on the 4%, $147,600 note payable 14 Sold equipment at the end of January for $17.220 cash The equipment had = cost of $24,600 and a carrying amount of $14.760 15. Purchased new equipment at the end of the month costing $12.300 by issuing common shares Incurred depreciation on equipment on a straight-line basis. The equipment has a useful life of six years and no residual value 16 17 Estimated at the end of January that $5.166 of accounts receivable was uncollectible 18 Estimated that income tax incurred in January amounted to $4.920. This amount will be paid next month Prepare T accounts and enter the December 31 balances. Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Estimated Inventory Returns Prepaid Insurance Equipment Accumulated Depreciation-Equipment