Current Attempt in Progress Marigold Ltd. is a small wholesaler of restaurant supplies. The company's post-closing trial balance at December 31, 2023, t its fiscal year, is presented below: MARIGOLD LTD. Post-Closing Trial Balance December 31, 2023 Debit Credit Cash $70,000 Accounts receivable 440,000 Allowance for expected credit losses $22,000 Inventory 356,000 Estimated inventory returns 10,000 Equipment 1,800,000 Accumulated depreciation-equipment 480,000 Accounts payable 265,000 Interest payable (pertains to bank loan payable) 4,000 Employee income tax payable 48,000 CPP payable 26,000 Interest payable (pertains to bank loan payable) 4,000 Employee income tax payable 48,000 CPP payable 26,000 El payable Provisions Refund liability Deferred revenue 11,000 30,000 40,000 11,000 Bank loan payable Common shares Retained earnings 1,200,000 60,000 479,000 $2,676,000 $2,676,000 The company had the following transactions during January 2024. When recording these transactions, use the item number lis instead of the date and also use the same item number if recording a subsequent adjustment pertaining to that item. 1. The bank loan bears interest at 4% and requires monthly instalment payments of $12,000 principal and interest on t first day of the month. The company properly accrued interest on the loan at the end of 2023. A loan payment was ma on January 1, 2024, and the principal portion of that $12,000 payment was $8,000. 2 Accrued interest on the bank loan for the month of January 2024. 3. Early in January 2024, the company paid for a one-year insurance policy on equipment for $24,000. 4. Equipment has a useful life of five years and is depreciated on a double-diminishing-balance basis. 5. All the payroll-related liabilities were paid off in early January 2024. 6a. 6b. At the end of January, salaries for that month were paid out immediately. Gross salaries were $290,000 and amounts withheld from the employees' pay cheques included the related employee income tax of $39,400, CPP of $14,797, and El of $4,424. In addition to these amounts, the employer was required to contribute $14,797 to CPP and $6,194 to El. The salaries were paid but no amounts were remitted to the government regarding the salaries for January. 7. Paid a $9,000 income tax instalment. 8. 9. 10. 11 12a Sales for the month of January were $860,000 and the cost of the inventory sold was $215,000. The company uses a perpetual inventory system. All sales were on credit. The company expects a 5% return rate. Accounts receivable collected during the month were $780,000. A customer owing the company $16,000 went bankrupt during January. Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that the allowance for expected credit losses should be $30,000 at month end. Inventory costing $210,000 was purchased in January on credit. 12b. Office expenses of $40,000 were incurred on credit. 13. 14. During the month of January, accounts payable amounting to $317.000 were paid. The provisions at December 31, 2023, consisted of estimated damages from a lawsuit. In January, legal counsel felt that an additional $28,000 of damages had become probable that month. Any expenses relating to these damages are recorded in administrative expenses. 15. Deferred revenue consists of deposits from customers received in advance. Non 15. ST 16. 17. Deferred revenue consists of deposits from customers received in advance. No new deposits were received in January, but by the end of the month, management had estimated that deferred revenue at that time should be $5,000. Products sold to the customers that paid deposits cost 25% of the price they were sold at. The company accepted product returns from credit customers in January. The sales value of these products was $36,000 and the company just 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. The company declared and paid dividends amounting to $5,000 in January. (b) Your answer is partially correct. Record the January transactions and adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entrier 0 answers to O decimal places, eg 1275.) January.transactions Item Account Titles and Explanation 1. Bank Loan Payable 3. 5. Interest Payable Cash Prepaid Insurance 68 Cash CPP Payable El Payable Employee Income Tax Payable Cash Salaries Expense Employee Income Tax Payable Debit Credit Question 1 of 3 CPP rayare 6b. 7. El Payable 8a. Cash Accounts Payable CPP Payable El Payable Income Tax Expense Cash Accounts Receivable Refund Liability Sales (To record sales) Cost of Goods Sold Estimated Inventory Returns Inventory (To record Cost of Goods Sold) 9. Cash 10. 11. Accounts Receivable Allowance for Expected Credit Losses Accounts Receivable Credit Losses Allowance for Expected Credit Losses 120. Inventory Accounts Payable 12b. Inventory Accounts Payable 13. Accounts Payable 6 W E R MacBook Air Pil F DO je 3i amount is paid not owed Question 1 of 3 13. Accounts Payable 16. Cash (To record the returns) 17. (To record the cost of inventory returned) cash Question 1 of 3 < > Item Account Titles and Explanation 2. Interest Expense Interest Payable 3. Insurance Expense Prepaid Insurance 4. Depreciation Expense Accumulated Depreciation Equipment 14. Administrative Expenses Provisions 15a. Deferred Revenue 15b Sales Cost of Goods Sold Inventory Debit Credit