Crane ttd, is a small wholesaler of restaurant supplies. The company's post-closing trial balance at December 31 , 2020, the end of its fiscal year, is presented below. The company had the following transactions during January 2021. When recording these transactions, iase the item number fisted instead of the date and also use that same item number if recording a subseguent adjustment pertaining to that tem 1. The bark lown bears interest at 4% and requires moenty fored pryments of $9,000 induding interest on the first day of the month the company properily accrued interest on the laan at the end of 2020 A loar payment was mude on January 1, 2021. and the prikipal portion of that 59000 payment was 56,000. 2. Accroed interest on the bank loan for the monthof Javary 2021. 2. Accrued interest on the bank loan for the month of January 2021. 3. Early in January 2021, the company paid for a one-year insurance policy on equipment for $24,000. 4. Equigment has a useful life of five years and is depreciated on a double-diminishing-balance bas5. 5. All of the payroll-related liabilities were paid off in early January 2021. 6a. At the end of January, salaries for that month were paid out. Gross salaries were $290.000 and amounts withheid froin the employees' paycheques included the related employee income tax of $48,000,CPP of $14,775, and E of $4,698. 66. In addition to these amounts, the employer was required to contribute $14.775 to CPP and $6.577 to El. The salaries were paid but no amounts were remitted to the government regarding the salaries for Jamary. 7. Paid a $9,000 income taxinstalment. 8. Sales for the month of January were $800,000 and the cost of the inventory sold was $200,000. The company uses a perpetual inventory system. All sales were on credit. The corrpary expects a 5% return rate. 9. Accounts receivable colkected during the month were $780.000. 10. Acustomer owing the company $16,000 went bankrupt during January. 11. Reviewed outstanding accounts receivable, Determined, through an aging of accounts, that doubtful accounts were 530,000 at month end. 12a. Inventory costing $200,000 was purchased in Japwary on credit, 126. Othce expenses of $40,000 were incurred on credit. 13. During the month of January, accounts payable anounting to $300,000 were paid. 13. During the month of January, accounts payable amounting to $300,000 were paid. 14. The provisions at December 31,2020 , consisted of estimated damages from a lawsuit. In January, legal counsel felt that an additional $20,000 of damages had become probuble that month. Any expenses relating to these damages are recorded in administrative expenses. 15. Deferred revenue consists of deposits from customers received in advance. No new deposits were received in fanuary but by the end of the month management has estimated thut deferred reverwe at that time should be $5.000. Products sold to these customers that paid deposits cost 25% of the price they were sold at. 16. The company accepted product returns from credit customers in January. The sales value of these products was $36,000 and the company j ust reduced the receivable from the customer when the product was returned. The products returned were not damaged and cost 25% of the price they were sold at. 17. The compuery declared and paid dividends amounting to $4000 in January. Item Account Titles and Explanation 1. Bank Loan Payable Interest Payable \begin{tabular}{l} Debit \\ \hline \multicolumn{2}{|}{6000} \\ \hline 3,000 \\ \hline \end{tabular} Credit Cash 3 Prepaid Insurance 24,000 9.000 24,000 5. Employee incoine Tax Payable cpppayable El Payable \begin{tabular}{|r|} \hline 48,000 \\ \hline 25,000 \\ \hline 10,000 \\ \hline \end{tabular} Eash 6a. Salaries Expente 6a. Salaries Expense Employee Income Tax Payable CPP Payable El Payable Cash 222,527 6b. El Payable CPPPayable 7. Income Tax Expense Cash 8a. Accounts Receivable. 7. Income Tax Expense Cash 8a. Accounts Receivable 800,000 Sales Estimated Inventory Returns (To record sales) 8b. Cost of Goods Sold Inventory 200,000 Estimated Inventory Returns (To record Cost of Goods Sold) 9. Cash \begin{tabular}{|r|} \hline 780,000 \\ \hline \end{tabular} Accounts Recelvable 10 Bank Loan Payable Accounts Recelvable 11. Bad Debts Expense Allowance for Doubtful Accounts 12a. Inventory Accounts Payable 12b. Utilities Expense Cash 13. Accounts Payable. 13. Accounts Payable 300,000 Cash 16. Estimated Inventory Returns 36,000 Inventory Accounts Recelvable Cost of Goods Sold 17. Dividends Dectared Cash 2. Interest Expense Interest Payable 3. Insurance Expense Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation - Equipment 14. Administrative Expenses 20,000 Estimated Inventory Returns