PLEASE COMPLETE ALL PARTS INCLUDING THE ADJUSTING AND CLOSING ENTRIES AND ALL FINANCIAL STATEMENTS, THANK YOU! :$)$

Accounting Cycle Review

ACR$5\mathrm{.}1($LO $2,3,4)($Record and post general, adjusting, and closing entries; prepare trial

balances and financial statements.$)$ Heritage Furniture Limited reports the following

information for $11$ months of the year in its February $28,2024,$ trial balance. The company's

year end is March $31.$ Heritage Furniture incurred the following transactions for the month of March. The company

uses a perpetual inventory system.

Mar. $1$ Received $$125,000$ on account from a major customer.

$2$ Paid a supplier an amount owing of $$200,000,$ taking the full discount, terms $\frac{2}{10},\frac{n}{30}.$

$5$ Purchased merchandise from a supplier, $$300,000,$ terms $\frac{2}{10},\frac{n}{30},$ FOB destination.

$6$ Recorded cash sales, $$285,000.$ The cost of goods sold for these sales was $$200,000.$ No returns

were anticipated related to this sale.

$7$ Returned scratched merchandise to the supplier from the March $5$ purchase, $$25,000.$

$8$ The appropriate company paid freight for the March $5$ purchase, $$7,500.$

$9$ Sold $$200,000$ of merchandise on account, terms n$/30,$ FOB destination. The cost of goods sold

was $$140,000.$ Management estimated that sales returns will be $12\%$ of sales.

$9$ The appropriate company paid freight for the March $9$ sale, $$5,000.$

$12$ Ordered custom merchandise for a local designer totalling $$50,000.$ Received $$12,500$ as an

advance payment.

$13$ Accepted returned merchandise from the sale on March $9,$ $$20,000.$ The cost of the goods

returned to inventory was $$14,000.$

$14$ Paid for the merchandise purchased on March $5,$ net of merchandise returns on March $7.$

$16$ Paid salaries of $$45,000.$

$20$ Recorded cash sales, $$255,000.$ The cost of goods sold for these sales was $$179,000.$ No returns

were anticipated related to these sales.

$27$ Paid salaries, $$50,000.$

$29$ Received payment of merchandise sold on March $9,$ net of merchandise returns on March $13.$

$30$ Paid rent, $$5,000.$ Adjustment and additional data:

Accrued $$10,000$ for utilities, $$10,000$ for salaries, and $$9,000$ for interest on the bank

loan.

Recorded depreciation on equipment, which has an expected useful life of $10$ years.

Recorded an additional $$50,000$ of income tax payable.

Common shares were issued during the year for $$1,000.$

$$45,000$ of the bank loan is due to be repaid in the next year.

Instructions

a$.$ Record the March transactions.

b$.$ Set up $T$ accounts, enter the opening balances, and post the transactions recorded in

part $($a$).$

c$.$ Prepare a trial balance as at March $31.$

d$.$ Record and post adjusting entries for the year ended March $31,$ assuming adjusting

entries are made annually.

e$.$ Prepare an adjusted trial balance as at March $31.$

f$.$ Prepare a multiple$-$step statement of income, statement of changes in equity, and

statement of financial position for the year.

g$.$ Prepare and post closing entries.

h$.$ Prepare a post$-$closing trial balance as at March $31.$