Set forth below is the adjusted trial balance of the Trough Corp. as of 31 March 20X2:

Account		Debit			Credit
Cash	$	24,900
Accounts receivable		72,500
Merchandise inventory		87,800
Prepaid rent		8,500
Equipment		41,720
Accumulated depreciation				$	7,700
Accounts payable					47,500
Note payable					45,300
Accrued interest payable					1,300
Capital stock					16,250
Retained earnings					117,370
	$	235,420		$	235,420

The following information describes the companys April transactions and provides the data required for month-end adjustments:

• Cash sales were $86,400.
• Sales on account were $79,000.
• Repaid $10,500 of note payable principal on 1 April.
• Operating expenses of $26,250 were paid in cash.
• Collected $43,050 in cash from customers on account.
• Wrote off $2,100 of accounts receivable as uncollectible. No other accounts receivable are in doubt of collection.
• Shareholders invested $20,500 in the business in exchange for 1,000 common shares.
• Bought $82,500 of merchandise on account.
• Ending merchandise inventory was $53,900.
• Paid suppliers $37,500 on account.
• Spent $5,500 for advertising to take place in May 20X2.
• Paid $14,800 in cash for wages, and still owed $3,000 for wages at month-end.
• The rent had previously been paid in advance to 31 July 20X2.
• The equipment has a total useful life of 10 years, and salvage of $4,520. These estimates have not changed since the asset was first acquired.
• The note payable bears an interest rate of 6% per year, and interest is due on 1 May.

  Required:

  1. Journalize the April transactions and adjusting journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations.)

• Record the cash sales.
• Record the sales on account.
• Record the notes payable.
• Record the operating expenses.
• Record the cash received towards accounts receivable.
• Record the bad debt expense.
• Record the issuance of common shares.
• Record the purchase of goods on account.
• Record the cost of goods sold.
• Record the cash paid against goods purchased on account.
• Record the advertising expenses paid in advance.
• Record the wages expense.
• Record the rent paid in advance.
• Record the depreciation expense.
• Record the interest expense.

2. Prepare an SCI and SFP for the month of April!

2. Prepare an SCI and SFP for the month of April. $ 165,400 (33,900): 131,500 TROUGH CORPORATION Statement of Comprehensive Income For the month ended 30 April 20X2 Sales Cost of goods sold Gross profit Expenses: Wages 17,800 Rent 2,125 Operating 26,250 Depreciation 3,720 Bad debts 2,100 Interest 174 52,169 79,331 Earnings and comprehensive income $ $ TROUGH CORPORATION Statement of Financial Position As at 30 April 20X2 Assets Cash Accounts receivable Inventory Prepaid rent Prepaid advertising Equipment $ 41,720 Less : Accumulated depreciation (11,420) 80,300 106,350 53,900 6,375 5,500 30,300 282,725 $ Total assets Liabilities Accounts payable Notes payable Interest payable Wages payable 92,500 34,800 1,474 3,000 131,774 Owners' equity Capital stock Retained earnings 36,750 36,750 168,524 Total liabilities and owners' equity $