Crane Fabrications Ltd. sells greenhouse kits to retailers and garden centres. The companys post-closing trial balance at December 31, 2020, the end of its fiscal year, is presented below:

Crane had the following transactions during January 2021:

Jan. 1		The bank loan bears interest at 3% and requires monthly payments on the first day of the month consisting of principal of $20,800 plus interest. The interest for December 2020 was properly accrued at the end of 2020.
8		Received payments of $185,120 from customers in payment of their accounts.
13		Made sales on account totalling $224,640 to garden centres. The greenhouse units sold had cost Crane $126,880.
15		Purchased additional greenhouse kits from a supplier on account for $78,000.
17		Paid accounts payable that were due to creditors totalling $124,800.
18		Paid salaries of $72,800, which included the accrued salaries owing at the end of 2020 and $37,440 related to salaries earned to date in January.
21		Purchased supplies on account for $1,560.
24		Received a shipment of additional greenhouses from a supplier. The invoice for $101,920 is due in 30 days.
26		Made sales of $131,040, of which $60,320 was on account and the remainder was cash. The cost of the greenhouses sold was $70,720.
31		Delivered a custom greenhouse that a customer had ordered and put a $26,000 deposit down on. The total sales price was $52,000 and the greenhouse had cost Crane $36,400. The customer paid the outstanding balance in cash.

Crane reconciles its bank account at the end of every month and makes any necessary journal entries. The following information was gathered from reviewing the companys bank statement for the month of January:

1.		There were outstanding cheques of $12,480.
2.		The service charges on the account were $42 for the month.
3.		A deposit for $26,000 was made using the bank's night depository slot on January 31. This deposit is not reflected on the companys bank statement for January.
4.		A cheque from one of Cranes customers for $10,192 that had been deposited during the month was returned by the bank due to the customer having insufficient funds in their account.
5.		The companys account balance at January 31 was $188,406 according to the bank statement.

Crane records adjustments monthly on the last day of the month. Adjusting entries were required for the following:

1.		Record depreciation on the equipment assuming that Crane uses the straight-line method to depreciate its equipment and the equipment is expected to have a useful life of six years.
2.		Accrue interest for the month on the bank loan.
3.		When supplies were counted, it was determined that supplies with a cost of $1,352 were still on hand.
4.		Accrued salaries payable are $37,440.
5.		The company earned $58,240 of the deferred revenue. The cost of the goods sold was $40,560.
6.		The estimated income taxes owing for the month of January was $16,640.

a. Record January Transactions

Date Account Titles and Explanation Debit Credit

b. Prepare a T account for the Cash account for the month of January to arrive at the unadjusted cash balance per books:

Prepare the bank reconciliation at January 31, 2021

Prepare any journal entries required from the bank reconciliation

c. Set up T accounts, enter the December 31 opening balances, and post the journal entries prepared in parts (a) and (b). (Post entries in the order of journal entries presented in the previous parts.)

Set up T accounts for: Cash, Accounts Receivable, Supplies, Inventory, Equipment, Accumulated Depreciation - Equipment, Accounts Payable, Interest Payable, Salaries Payable, Deferred Revenue, Bank Loan Payable, common shares, Retained earnings, sales, cost of goods sold, salaries expense, bank charges expense

Debit Credit Cash $133,120 Accounts receivable 956,800 Supplies 3,120 Inventory 475,280 Equipment 2,371,200 Accumulated depreciation-equipment $395,200 Accounts payable 426,400 Interest payable 5,200 Salaries payable 35,360 Deferred revenue 124,800 Bank loan payable 2,080,000 Common shares 260,000 Retained earnings 612,560 $3,939,520 $3,939,520