Please answer only LETTER (A) ignored (B)

The Chart of Accounts (GL no.) is shown below: Account Description Account # ASSETS Account # 400 101 105 405 410 420 110 120 125 140 430 145 500 510 200 Account Description REVENUE Sales Revenue Sales Discounts Sales Returns and Allowances Interest Revenue Other Income EXPENSES Cost of Goods Sold Employee Benefits Expense Depreciation Expense Insurance Expense Interest Expense Office Supplies Expense Rent Expense Salaries Expense Bank Charges Expense Maintenance Expense Entertainment Expense Shipping Expense Cash Over and Short Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Equipment Accumulated Depreciation LIABILITIES Accounts Payable Interest Payable CPP Payable El Payable Income Tax Payable Salaries Payable Unearned Revenue Bank Loan SHAREHOLDERS' EQUITY Common Shares Retained Earnings 515 205 520 220 525 530 225 230 225 535 540 545 240 245 550 300 305 555 560 565 Page 2 Transactions for the month of February: Instructions: a) Prepare the journal entries for the following transactions for the month of February. You will also need to update the inventory in the table for each purchase and sale, return or allowance, found under the Inventory Valuation tab of this workhank Feb 1 Paid rent for February amounting to $660, Cheque #3354 Feb 1 Tees R Us decided to establish a petty cash fund for the office. A cheque #3355 of $500 was issued and cashed. Purchased merchandise from Henley on account, invoice #425; 1100 units at $28 each. Terms of Feb 5 the purchase were 4/10, net 30, FOB Destination. The seller paid the shipping cost amounting to $55. Note: Update the Inventory Valuation table after each purchase. Feb 7 Sold mechandise on accout to Arrow, 800 units at $75 each with invoice #2341. The invoice terms were 3/10, net 30, FOB Destination. Note: Update the Inventory Valuation table after each sale. Feb 9 Some of goods purchased from Henley were defective. Henley agreed to a 5% allowance on the total purchased. Note: You will need to update the Inventory Valuation table to reflect the allowance it reduces the value of the inventory. Paid total liability with a cheque #3356 to Henley for the February 5 purchase less the allowance from Feb. 9. Note: You will need to update the Merchand Inventory account to reflect any discount for early payment to supplier. The employees are paid bi-weekly. Paid the payroll for the first half of February, cheque #3357. Gross pay is $12,500, CPP is $638, El is $235 and income tax is $2,500. Use the general journal to record this. Feb 12 Feb 15 Feb 15 Record the employer's share of CPP (100%) and El (140%) of what was deducted from employees. Feb 17 Arrow paid invoice #2341 on time and took advantage of the early payment discount. Feb 18 Feb 20 Feb 20 Bought inventory from Fabrica with cheque #3358, 1400 units at $30 per unit. Note: Update Inventory Valuation table to reflect purchase Sold 600 units on account at $90 each with invoice #2342 to Martin. The invoice term 3/10, net 30, FOB shipping point. Note: Update Inventory Valuation table. Received $3,200 from Columbia for a sale on account last month. The remaining balance of the petty cash account was $150. Total expenses incurred using the petty cash fund this month amounting to $345. In this amount, it includes the shipping cost incurred on Feb 7 in the amount of $55 and the other costs are for the office supplies expense. Prepare the entry to replenish the petty cash fund with Chq#3359 Feb 25 Made monthly bank loan payment of $1,076 which includes $930 principal and $146 interest. Feb 28 Note: You need to debit the non-current portion of the bank loan for the principal payment. The current portion due will remain the same as the due date for the loan is greater than 12 months from balance sheet date. b)Enter the opening balances of the accounts from the January 31, 2021 Balance Sheet and post the above journal entries to the accounts