Stanley's Pet Supplies began operations in 2016. The following is the post-closing trial balance for the company at December 31st, 2019: Accounts payable Accounts receivable Bank loan payable (Note) Cash Common shares Inventory Prepaid rent Retained earnings Wages payable Debit Credit $ 3,650 500 20,000 13,500 5,000 16,150 1,200 1,900 800 $31,350 $31,350 Note: The loan was borrowed on October 1, 2016. The annual interest rate on the loan is 7.5%, and interest is to be paid on December 31st each year. REQUIRED: A. Prepare journal entries for the following 2020 transactions or explain why no entry is required. Clearly label each account affected, and show any calculations necessary, but explanations for each entry are not required. State any assumptions that you feel are necessary. 1. 2. 3. 4. Purchased inventory on account for $13,800. Sold inventory to customers for $62,400. 90% of the sales were for cash, and the remaining 10% were on account. The inventory sold to customer during the year, had originally cost the company $20,500. During 2020 the company received cash of $5,800 from customers who had previously purchased on account. 5. Wages earned by employees in 2020 totaled $10,750, and there were no amounts owing to employees at December 31, 2020. 6. 7. The company paid cash of $4,800 on August 1, 2020 for a computerized point-of-sale (POS) sales register system which was installed the same day. This computer system is expected to have a four- year life, after which time it will need to be replaced. It is not expected to have any resale value at the end of the four-year useful life. Operating costs of $3,600 were paid in cash during 2020. 8. Rent was $1,200 per month in 2020, from January 1 to October 31st. Rent is paid on the last day of each month (in advance) and covers the next month. [E.g. Rent of $1,200 was paid on September 30, 2020 to cover the month of October 2020.] On November 1st, 2020, the landlord increased the rent to $1,500 per month. This was the amount paid on October 31st, November 30th and December 31st, 2020. All rent payments are made in cash. 9. Cash payments of $16,500 were made to suppliers during 2020. 10. On July 1, 2020, the company repaid $5,000 of principal owing on the bank loan payable. The required interest payment on the bank loan was made as scheduled on December 31st, 2020. 11. At December 31, 2020, a dividend of $400 was declared but not yet paid. It will be paid in February 2021. B. Using your journal entries above, prepare t-accounts for 2020. You must have a t-account for all account names used in your journal entries, or on your financial statements. Do not forget to include the opening balance (at Dec 31, 2019) for all permanent accounts. C. Using the results of your t-accounts, prepare a trial balance at December 31, 2020. D. Prepare an income statement for the year ended December 31, 2020. E. Prepare a statement of financial position (balance sheet) as at December 31, 2020.