Intelligent Toys, Inc ("ITI") is a well establish toys trading company which adopts the periodic system. ITI prepares its financial statements on a monthly basis. The trial balance of ITI as at 28 February 2021 is presented as follows: Intelligent Toys, Inc Trial Balance As at 28 February 2021 Account No. Account Title Debit Credit (S) ($) 201 Accounts Payable 420,000 112 Accounts Receivable 675,000 152 Accumulated Depreciation - Building 745,200 154 Accumulated Depreciation - Equipment 570,000 156 Accumulated Depreciation - Motor Vehicle 664,668 113 Allowance for Doubtful Accounts 20.250 151 Building 9,720,000 101 Cash 1,001,520 291 Dividends Payable 120,000 153 Equipment 990,000 115 Interest Receivable 144.000 140 Long-term Investment 750,000 121 Merchandise Inventory 975,000 155 Motor Vehicle 832,500 114 Notes Receivable 2,700,000 131 Prepaid Insurance 18,000 320 Retained Earnings 2,077,212 241 Salaries Payable 105,300 311 Share Capital - Ordinary SI par value, 10,000,000 shares authorized 6,000,000 shares issued and 5,977,500 shares outstanding 6,000,000 312 Share Capital - Preference 5%, S100 par value, noncumulative, 100,000 shares authorized 60,000 shares issued and outstanding 6,000,000 313 Share Premium - Ordinary 840,000 314 Share Premium - Preference 300,000 315 Share Premium - Treasury 9,000 132 Supplies 9,360 330 Treasury Shares (22,500 shares) 56,250 17,871,630 17.871,630 The following activities took place in March: Mar. 1(a) Purchased children laptop toys from Esorbma Limited, S95,000, terms 1/10. n/30, FOB shipping point. (b)The responsible party paid the freight charges of $500. The goods were collected by the shipping company on 1 March and arrived at ITI's warehouse on 4 March. 10) Sold 22,500 Treasury shares at $2 each. 1(d) Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlic Limited and the related interest receivable balance of S144,000. $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to note (e) of additional information.) 1(e) Sold remote control helicopters valued at $298,000 to TneNiv Limited, a wholesaler, terms n/20, FOB destination. The appropriate party paid delivery charges of $600. The goods were shipped on 1 March and arrived at the warehouse of TnecNiv Limited on 3 March 2 A 10% share dividend was declared when the market value per share was $2.1. 3 Cash is received from TnecNiv Limited for the remote-control helicopters shipped on March and arrived at the warehouse of TneNiv Limited on 3 March 4 Sold kids ride on cars to Vinga Limited, S140,000, terms n/30, FOB shipping point, 2% trade discount. The appropriate party paid freight charges of $400. The goods were shipped on 4 March and arrived at the warehouse of Vinga Limited on 6 March 5 The management determined that the amount due from a customer, MYTOM Limited, $50,000 is uncollectible as the company has closed down. 6 Purchased supplies of S4,100 on account from Jimmy Printing and Stationery Limited 7a) Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus. 766) Received credit memorandum of $1,700 from Esorbma Limited for goods purchased in March 8 Granted Vinga Limited an allowance of $1,000 (original price) due to discrepancy in the color of the ride on cars. 9(a) Sold flying disc and toy swings to Action Limited, list price of S120,000 with a 20% trade discount, n/20, FOB shipping point. The responsible party paid freight-charges of S800. The shipping document showed that the goods arrived at the warehouse of Action Limited on 12 March. Mar. 9(b) Paid Esorbma Limited for the children laptop toys bought on 1 March and the amount of $220,000 on account for the purchase on 27 February Purchases terms with Esorbma Limited in February was 2/10, n. 30. FOB shipping point. 10 Paid $162,000 for salary up to 9 March (Tuesday). All employees work a five-day week and are paid every four weeks on the following Wednesday, based on the number of days they have worked in the last four weeks. Employees are entitled to full pay on public holidays but not on Saturday and Sunday. The employees receive a total salary of $40,500 for a five-day work week. 12 Received payments from Vinga Limited, for the March sales. 13 Acquired S150,000 toy musical instruments by signing a 90-day, 5% notes payable. 16 Queenie Company Limited, a customer, has financial difficulties and unable to pay the outstanding balance of $200,000. The company has a long-term relationship with Queenie, and agreed to accept a 12%, 45-day notes from the customer to settle the outstanding balance. 17 Share dividends were distributed. Shareholders on the register of the company on 6 March 2021 are entitled to receive the dividend shares. 21 Paid all dividends declared previously. 25 Received from Tom Limited, S180,000, as the prepayment for the leasing of part of the warehouse for one year from 1 April 2021 to 31 March 2022. 27 Received inflatable castle of $40,000 consignment goods retured from Consignee Trading Limited. The goods are delivered to Consignee Trading Limited for consignment purpose in February 2021. 28 Purchased $23,000 play mats from Millan Company, FOB Destination, terms 1/10, n/45. The shipping document showed that the goods were received on 3rd April 2021. 29 A cash dividend was declared for preference shares and a cash dividend of 0.03 per share was declared for ordinary shares. The dividends will be paid in April 30 Received a check of $16,000 from the liquidator of YOT Limited. YOT Limited was closed down in December 2020 and the managing director of ITI authorized to write off $45,000, being the full amount outstanding in the accounts of YOT Limited, as of then. The following additional information is available on 31 March 2021: (a) Electricity incurred for the month amounted to $7,000. (b) The employees receive a total salary of $40,500 for a five-day work week. All employees worked for the whole month of March. (c) (i)Building, (ii) equipment and (iii) motor vehicles are recorded at historical cost and their estimated useful lives are 50 years, 5 years and 5 years respectively. No residual value is expected for the building. The building was acquired on 1 May 2017. The company uses straight-line method for all buildings. All the equipment and motor vehicles are acquired on 1 January 2018. The company uses unit of activity method to depreciate equipment and the double-declining balance method to depreciate all motor vehicles. The company expects that the salvage value of the equipment and motor vehicles is 10% of the purchase cost. The equipment is for packing and the total amount of packing for 5 years are estimated to be 594,000 units. The total packing in March amounted to 9,800 units. Annual depreciation is calculated for each year from 1 January to 31 December, monthly depreciation is equal to (annual depreciation/12). (d) Physical count showed that $4,000 of supplies and $1,186,000 of merchandise inventory remained on hand at 31 March 2021. (e) The bank statement balance is $1,000 greater than the cash account balance. This is relating to an unpresented cheque of the dividends paid on 21 March 2021. (1) The prepaid insurance was paid in last December covering a 12-month general insurance from January to December, 2021. (g) Allowance for bad debt is estimated based on 10% of the closing accounts receivable balance due to dramatical down turn of the economy (h) Recognize interest expense for the month. (i) Recognize interest revenue for the month. Input "O"if no entry is needed *With more than one debit entry or more than one credit entry, input the entries with smaller Account No. first Date Dr/Cr Account No. Amounts Mar 1 (a) Dr Item Item 2 Cr Item 3 Item 4 Mar 1 (b) Dr Items Item 6 Cr Item 7 Item 8 *Mar 1(c) Dr Item Item 10 Dr Item 11 Item 12 Dr Item13 Item 14 Cr Item 15 Item 16 *Mar 1 (d) Dr Long Term Investment Item 17 Item 18 Dr Item 19 Item 20 Dr Item21 Item 22 Cr Item23 Item 24 Cr Item25 Item 26 Cr Item27 Item 28 Item29 Item 30 Mar 1 (c) Dr Item31 Item 32 Cr Item33 Item 34 *Mar 2 Dr Item35 Item 36 Cr Item37 Item 38 Cr Item 39 Item 40 Mar 3 Dr Item 41 Item 42 Cr Item 43 Item 44 Mar 4 Dr Item 45 Item 46 Cr Item47 Item 48 Mar 5 Dr Item 49 Item 50 Cr Item51 Item 52 Mar 6 Dr Item53 Item 54 Cr Item55 Item 56 Mar 7 (a) Dr Item57 Item 58 Item 39 Item 60 Mar 7 (b) Dr Item61 Item 62 Cr Item63 Item 64 Cr Cr Amount S Item 66 Item 68 Date Dr/Cr Mar 8 Dr Cr Mar 9 (a) Dr Cr *Mar 9(b) Dr Cr Item 70 Item 72 Cr *Mar 10 Dr Dr Cr Mar 12 Dr Cr Mar 13 Dr Cr Item 74 Item 76 Item 78 Item 80 Item 82 Item 84 Item 86 Item 88 Item 90 Item 92 Item 94 Item 96 Item 98 Item 100 Item 102 Item 104 Item 106 Item 108 Item 110 Mar 16 Account No. Items Item 67 Item69 Item 71 Item 73 Item 75 Item 77 Item 79 Item81 Item83 Item 85 Item87 Item89 Item91 Item 93 Item 95 Item97 Item 99 Item 101 Item 103 Item 105 Item 107 Item 109 Item111 Item 113 Item115 Item 117 Item 119 Item 121 Item 123 Item 125 Item 127 Dr Cr Mar 17 Dr Cr Dr Mar 21 Cr Mar 25 Dr Cr Dr Mar 27 Cr Item 112 Mar 28 Dr Cr Mar 29 Dr Cr Dr Item 114 Item 116 Item 118 Item 120 Item 122 Item 124 Item 126 Item 128 Mar 30 Cr Dr Cash Cr