loan principal and $$200$ to interest

July $15-$ received $$500$ payment from a customer who had already been billed

July $20-$ you receive the monthly telephone bill of $$250,$ to be paid at later date

July $25-$ you purchase equipment worth $$2,500$ on account

July $27-$ you pay the $$1,000$ monthly rent using cash

July $30-$ you pay salaries of $$2,400$ to employees

a$.$ Prepare schedule of cost of goods sold for Mighty Sports for January using the following figures:

Beginning inventory: $$47,300$

Purchases: $$20,500$

Purchase returns and allowances: $$600$

Purchase discounts: $$250$

Transportation$-$in: $$1,200$

Ending Inventory: $$36,900$

b$.$ Prepare an income statement for Mighty Sports for January using the cost of goods sold from part $($a$)$ and the following figures:

Sales: $$70,550$

Sales returns and allowances: $$1,950$

Sales discounts: $$150$

Salaries: $$8,200$

Rent: $$1,975$

Delivery expense: $$900$

Other expenses: $$2,300$

a$.$ Prepare the May reconciliation for ABC Retails Co$.$ using the following information:

Bank statement balance: $$1,834\mathrm{.}36$

Cash account balance: $$2,240\mathrm{.}51$

The following cheques were recorded in the cash payments journal but did not appear on the bank statement: #$168$ $$87\mathrm{.}00,$ #$139$ $$297\mathrm{.}30,$ #$199$$$972\mathrm{.}30$

A deposit for $$1,890$ dated April $30$ was recorded in the cash receipts journal but not appear on the bank statement Service charge of $$47\mathrm{.}25$ are shown on the bank statement A NSF cheque for $$143\mathrm{.}50$ appeared on the bank statement as a returned item. It had been received by J$.$ Smith and was recorded in the company's cash receipts journal. A bank charge of $$20$ was levied

A cheque for $$37\mathrm{.}50$ has been cashed $($correctly$)$ by the client but was incorrectly recorded in the company's cash payments journal as $$375\mathrm{.}50.$ The cheque was issued for the purchase of office supplies.

b$.$ in a general journal, record any entries required to bring ABC Retail Co$.\text{'}$s records up to date.