Kokomo 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 companys post-closing trial balance at December 31, 2020, the end of its fiscal year, is presented below:

KOKOMO Convenience Store LTD. Post-Closing Trial Balance December 31, 2020
		Debit		Credit
Cash		$6,700
Accounts receivable		160,800
Allowance for doubtful accounts				$10,720
Inventory		80,400
Estimated inventory returns		1,340
Prepaid insurance		16,080
Equipment		241,200
Accumulated depreciation				107,200
Accounts payable				91,120
Employee income tax payable				9,112
CPP payable				4,288
EI payable				1,608
Refund liability				4,020
Dividends payable				6,700
Notes payable (due 2023)				160,800
Common shares				67,000
Retained earnings				43,952
		$506,520		$506,520

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 $73,700.

2.

Purchased inventory costing $36,180 on credit.

3.

Sold inventory that cost $40,200 on credit for $136,680. However, $2,680 of the amount sold is expected to be refunded due to returns and the cost of the inventory expected to be returned is $1,072.

4.

Collected accounts receivable amounting to $146,060.

5.

Wrote off $6,700 of uncollectible accounts receivable.

6.

Received inventory returns from customers and reduced accounts receivable from these customers for $3,752. The inventory that these customers returned was in excellent condition and had a cost of $1,206.

7.

Paid all salary-related liabilities outstanding at the beginning of January.

8.

Paid salaries to employees, who earned a total of $53,600 of gross pay less employee income tax, CPP, and EI of $9,648, $2,734, and $868, respectively. Withholdings will be remitted in February.

9.

Recorded employee benefits expense relating to the employers share of CPP of $2,734 and EI of $1,215.

10.

Paid rent of $12,060.

11.

Paid dividends owing on payment date at the beginning of the month.

12.

Expired $1,340 of prepaid insurance.

13.

Paid monthly interest on the 4%, $160,800 note payable.

14.

Sold equipment at the end of January for $18,760 cash. The equipment had a cost of $26,800 and a carrying amount of $16,080.

15.

Purchased new equipment at the end of the month costing $13,400 by issuing common shares.

16.

Incurred depreciation on equipment on a straight-line basis. The equipment has a useful life of six years and no residual value.

17.

Estimated at the end of January that $5,628 of accounts receivable was uncollectible.

18.

Estimated that income tax incurred in January amounted to $5,360. This amount will be paid next month.

Prepare T accounts and enter the December 31 balances.

Estimated Inventory Returns
Dec. 31 Bal.			Dec. 31 Bal.

Prepaid Insurance
Dec. 31 Bal.			Dec. 31 Bal.

Equipment
Dec. 31 Bal.			Dec. 31 Bal.

Accumulated DepreciationEquipment
Dec. 31 Bal.			Dec. 31 Bal.

Accounts Payable
Dec. 31 Bal.			Dec. 31 Bal.

Income Tax Payable
Dec. 31 Bal.			Dec. 31 Bal.

Employee Income Tax Payable
Dec. 31 Bal.			Dec. 31 Bal.

CPP Payable
Dec. 31 Bal.			Dec. 31 Bal.

EI Payable
Dec. 31 Bal.