Post-Closing Trial Balance December 31, 2020 Cash Accounts receivable 455,000 Allowance for doubtful accounts 22.750 Inventory 359,000 Estimated inventory returns 10,000 Equipment 1,800,000 Accumulated depreciation-equipment Accounts payable 480,000 Interest payable (pertains to bank loan payable) Employee income taxpayable CPP payable 269.000 El payable 4,000 Provisions 53.000 Refund liability Deferred revenue Bank loan payable 25,000 Common shares Retained earnings $2,684,000474,250$2,054,684,000 The company had the following transactions during January 2021 . When recording these transactions, use the item number listed instead of the date and also use that same item number if recording a subsequent adjustment pertaining to that item. 1. The bank loan bears interest at 4% and requires monthly fixed payments of $12,000 including interest on the first day of the month. The company properly accrued interest on the loan at the end of 2020 . A loan payment was made on january 1, 2021, and the principal portion of that $12.000 payment was $8.000. 2. Accrued interest on the bank loan for the month of January 2021. 3. Early in January 2021, the company paid for a one-year insurance policy on equipment for $24,000. 4. Equipment has a useful life of five years and is depreciated on a double-diminishing-balance basis. 5. All of the payroll-related liabilities were paid aff in early January 2021. 6a. At the end of January, salaries for that month were paid out. Gross salaries were $290,000 and amounts withheid from the employees' paycheques included the related employee income tax of $53,000,CPP of $14.775, and El of $4,698. 6b. In addition to these amounts, the employer was required to contribute $14,775 to CPP and $6.577 to El. The salaries were paid but no amounts were remitted to the government regarding the salaries for lanuary. 7. Paid a $9,000 income taxinstalment. 8. Sales for the month of January were $860,000 and the cost of the inventory sold was $215,000. The company uses a perpetual inventory system. All sales were on credit. The company expects a 5% return rate. 9. Accounts receivable collected during the month were $780.000. 10. A customer owing the company $16,000 went bankrupt during January. 11. Reviewed outstanding accounts receivabie. Determined, through an aging of accounts, that doubtful accounts were $30,000 at month end 12a. Inventory costing $220,000 was purchased in January on credit. 12b. Office expenses of $49,000 were incurred on credit. 13. During the month of January, accounts payable amounting to $316.000 were paid. 14. The provisions at December 31,2020 , consisted of estimated damages from a lawsuit. In January, lezal counsel felt that 15. Deferred revenue consists of deposits from customers received in advance. No new deposits were received in January. but by the end of the month, management has estimated that deferred revenue at that time should be $5.000. Products sold to these customers that paid deposits cost 25% of the price they were sold at. 16. The company accepted product returns from credit customers in January. The sales value of these products was $36,000 and the company justreduced the receivable from the customer when the product was returned. The products returned were not damaged and cost 25% of the price they were sold at. 17. The company declared and paid dividends amounting to $4,000 in January. Prepare T accounts and enter the December 31 balances. Accounts Receivable Allowance for Doubtful Accounts Inventory Estimated Inventory Returns Prepaid Insurance Equipment Accumulated Depreciation - Equipment Accounts Payable Interest Payable Employee Income Tax Payable CPP Payable El Payable Provisions Refund Liability Deferred Revenue Bank Loan Payable Common Shares Retained Earnings