QUESTION $1$

The opening Trial Balance of Dry Marker Corp at Dec $312022$ is as follows:

Trial Balance

Dry Marker Corp

at December $312022$

DR $/($CR$)$

Cash $(4,000)$

Accounts Receivable $22,000$

Allowance for Doubtful Accounts $(3,500)$

Inventory $80,000$

Equipment $-$

Accumulated Depreciation $-$

Accounts Payable $-$

Interest Payable $-$

Accruals Payable $-$

Deferred Revenue Payable $-$

Bank Loan $-$

Common Shares $(10,000)$

Retained Earnings $(84,500)$

Dividends $-$

Sales $-$

Cost of Goods Sold $-$

Depreciation Expense $-$

Bad Debts Expense $-$

Interest Expense $-$

All other Expenses $-$

Sales Returns $-$

Purchases $-$

Purchase returns $-$

Total $-$

During $2023$ The year the following transactions occurred:

$1.$ Sales were $$420,000.$ Cash sales were $$20,000.90\%$ of the credit sales were collected by year$-$end.

$2.$ Customers returned $$5,000$ worth of goods for cash refunds.

$3.$ $$20,000$ of the opening A$/$R was collected, the rest was written off.

$4.$ $$400,000$ of Merchandise was purchased during the year for cash.

$5.$ $$3,000$ of Merchandise purchased by Dry Marker was returned for cash.

$6.$ Equipment was purchased on January $1$st for $$220,000.$ The equipment is to be straight line depreciated over $10$ years and has no salvage value.

$7.$ $$400,000$ was borrowed from the bank on August $31.$ Principal and Interest are due in full in one year. Interest is $8\%.$

$8.$ At year$-$end, $$6,000$ of the cash sales were undelivered $$ these items will be delivered in January $2024.$

$9.$ Wages of $$5,000$ were paid for the two$-$week period ending Jan $11,2024.$ Employees worked Dec $30,$ Dec $31,$ Jan $2$ to $4,$ and Jan $7$ to $11($ignore any effect of Statutory holidays on your calculations$).$

$10.$ The ending Allowance for Doubtful accounts was revised to $$3,200$ to reflect the estimated amount of unrecoverable Accounts Receivable at year$-$end.

$11.$ Dividends of $$20,000$ were declared and paid during the year.

After year end, the following invoices were received but not recorded:

$12.$ An invoice for $$6,000$ was received on January $20,2024$ for Hydro for service from Dec $15,2023$ to Jan $15,2023.$ The invoice was paid on Feb $1,2024$ and received by Hydro on February $22024.$

$13.$ An invoice for $$1,000$ was received on January $12,2024$ from ABS Supplies $($for Inventory Purchases$)$ for goods delivered on Dec $22,2023.$ The invoice was paid on Jan $22,2024.$

Other information:

$14.$ A physical inventory count shows $$100,000$ worth of materials on site at December $312023.$

$15.$ The company$$s year$-$end date is December $31.$ Ignore income taxes.

Required:

A$.$ Journalize entries based on the information in items #$1$ to #$13($descriptions or transaction dates not required$),$ using only accounts listed in the Trial Balance.

B$.$ Calculate and Journalize the entry for Cost of Goods Sold.

C$.$ Prepare a statement of comprehensive income. $($This statement should include Gross Profit$)$

D$.$ Calculate ending Retained Earnings.