Hiroole 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: HIROOLE Convenience Store LTD. Post-Closing Trial Balance December 31, 2020 Debit Credit Cash $5,250 Accounts receivable 126,000 Allowance for doubtful accounts $8,400 Inventory 63,000 Estimated inventory returns 1,050 Prepaid insurance 12,600 Equipment 189,000 Accumulated depreciation 84,000 Accounts payable 71,400 Employee income tax payable 7,140 CPP payable 3,360 El payable 1,260 Refund liability Dividends payable Notes payable (due 2023) Common shares 3,150 5,250 126,000 52,500 Retained earnings 34,440 $396,900 $396,900 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 Paid off accounts payable of $57,750. 2. Purchased inventory costing $28,350 on credit. 3. Sold inventory that cost $31,500 on credit for $107,100. However, $2,100 of the amount sold is expected to be refunded due to returns and the cost of the inventory expected to be returned is $840. 4 Collected accounts receivable amounting to $114.450. 5. Wrote off $5,250 of uncollectible accounts receivable. 6. Received inventory returns from customers and reduced accounts receivable from these customers for $2.940. The inventory that these customers returned was in excellent condition and had a cost of $945, 7. Paid all salary-related liabilities outstanding at the beginning of January 8. Paid salaries to employees, who earned a total of $42.000 of gross pay less employee income tax, CPP, and El of $7,560, $2.142, and $680, respectively. Withholdings will be remitted in February 9. Recorded employee benefits expense relating to the employer's share of CPP of $2,142 and El of $952. 10. 10 Paid rent of $9,450, Paid dividends owing on payment date at the beginning of the month. 11. 12. Expired $1,050 of prepaid insurance. 13. 14. 15 15. 16. 17. 18. Paid monthly interest on the 4%, $126.000 note payable. Sold equipment at the end of January for $14,700 cash. The equipment had a cost of $21,000 and a carrying amount of $12,600 Purchased new equipment at the end of the month costing $10,500 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. Estimated at the end of January that $4,410 of accounts receivable was uncollectible. Estimated that income tax incurred in January amounted to $4,200. This amount will be paid next month. 1 Date Account Titles and Explanation Accounts Payable Cas Debit Credit