Current Attempt in Progress

The following transactions occurred in Wendell Corporation, which has a December $31$ year end.

Wendell has received $$9,000$ from customers in advance $($on deposit$)$ for inventory that will be shipped to those customers next year.

Wendell signed a five$-$year, $7\%,$$$200,000$ note payable on July $1.$ The note requires annual instalment payments of $$48,778$ principal and interest on June $30$ each of the next five years.

Wendell purchased inventory for $$120,000$ on December $23$ on account, terms $\frac{n}{30},$ FOB shipping point. The inventory was shipped on December $28$ and received by Wendell on January $2.$

Wendell received $$10,000$ from customers on December $21$ for services to be performed in January.

On December $31,$ Wendell sold inventory for $$8,000,$ plus $13\%$ HST$.$ The cost of goods sold was $$5,000.$ The company uses a perpetual inventorysystem.

Weekly salaries of $$18,000$ are paid every Friday for a five$-$day workweek $($Monday to Friday$).$ This year, December $31$ is a Monday. Payroll deductions for the one day of pay before the end of the year include CPP of $$192,$ El of $$57,$ and employee income tax of $$544.$ Employee benefits to be paid by the employer include CPP of $$192$ and El of $$80.$ Payroll deductions will be paid on January $15.$

Wendell is the defendant in a negligence lawsuit. Wendell's legal counsel estimates that it is highly probable that Wendell will lose the suit but is unable to estimate the damages that may need to be paid.

After the preparation of its corporate income tax return at year end, Wendell determined that total corporate income tax payable for the year was $$50,000,$ but $$45,000$ of this amount was paid during the year when the company made tax instalments.

Wendell reported non$-$current bank loans of $$250,000$ at December $31,$ of which $$30,000$ was due within the next year.

Wendell has a $$100,000$ operating line of credit available, on which $$10,000$ has been drawn. Interest pertaining to the amount drawn on the line of credit has been paid up to December $31.$

$($b$)$

Indicate any information that should be disclosed in the notes to Wendell's financial statements.