This problem continues the Splashed Canoe Company situation from CTA$2.$ At the beginning of the new year, Splashed Canoe Company decided to carry and sell T$-$shirts with its logo printed on them. Splashed Canoe Company uses the perpetual inventory system to account for the inventory. During January $2025,$ Splashed Canoe Company completed the following merchandising transactions:

Jan. $1$ Purchased $15$ T$-$shirts at $$4$ each and paid cash.

$2$ Sold $8$ T$-$shirts for $$10$ each, total cost of $$32.$ Received cash.

$2$ Collected $$4,500$ on account.

$3$ Purchased $50$ T$-$shirts on account at $$6$ each. Terms $2/10,$ n$/30.$

$7$ Paid the supplier for the T$-$shirts purchased on January $3,$ less discount.

$8$ Realized $4$ T$-$shirts from the January $1$ order were printed wrong and returned them for a cash refund.

$10$ Sold $40$ T$-$shirts on account for $$10$ each, total cost of $$200.$ Terms $3/15,$ n$/45.$

$12$ Received payment for the T$-$shirts sold on account on January $10,$ less discount.

$14$ Purchased $120$ T$-$shirts on account at $$5$ each. Terms $4/15,$ n$/30.$

$15$ Paid the utilities and phone bills from December

$15$ Paid the wages accrued in December.

$18$ Splashed Company called the supplier from the January $14$ purchase and told them that some of the T$-$shirts were the wrong color. The supplier offered a $$50$ purchase allowance.

$18$ Rented Canoes and received cash, $$1,425$

$20$ Paid the supplier for the T$-$shirts purchased on January $14,$ less the allowance and discount.

$20$ Received bills for utilities $($$$360)$ and telephone $($$$275)$ which will be paid later.

$21$ Sold $60$ T$-$shirts on account for $$10$ each, total cost of $$220.$ Terms $2/20,$ n$/30.$

$23$ Received a payment on account for the T$-$shirts sold on January $21,$ less discount.

$23$ Paid various accounts payable, $$1,800.$

$25$ Purchased $320$ T$-$shirts on account at $$5$ each. Terms $2/10,$ n$/30,$ FOB shipping point.

$27$ Paid freight associated with the January $25$ purchase, $$48.$

$29$ Paid for the January $25$ purchase, less discount.

$30$ Sold $275$ T$-$shirts on account for $$10$ each, total cost of $$1,300.$ Terms $2/10,$ n$/30.$

$30$ Paid employee, $$750.$

Month end adjusting entries:

$31$ A physical count of the inventory at the end of the month revealed the cost was $$670.$

$31$ The company estimated sales returns will be $$35$ with a cost of $$15.$

$31$ Office supplies used, $$55.$

$31$ The Unearned Revenue has now been earned.

$31$ Interest expense accrued on the notes payable, $$50.$

$31$ One month of rent is used $($see previous CTA for origional $3$ month rent payment$).$

$31$ Recorded depreciation on the building & canoes $($refer to CTA$2)$

Requirements

REQ$1$ Open the following T$-$accounts in the ledger, using the post$-$closing balances from CTA$2$: Cash, Accounts Receivable, Merchandise Inventory, Estimated Returns Inventory, Office Supplies, Prepaid Rent, Land, Building, Accumulated Depreciation$$Building$,$ Canoes, Accumulated Depreciation$$Canoes$,$ Accounts Payable, Utilities Payable, Telephone Payable, Wages Payable, Refunds Payable, Interest Payable, Unearned Revenue, Notes Payable, Common Stock, Retained Earnings, Income Summary, Sales Revenue, Canoe Rental Revenue, Cost of Goods Sold, Rent Expense, Wages Expense, Utilities Expense, Telephone Expense, Supplies Expense, Depreciation Expense$$Building$,$ Depreciation Expense$$Canoes$,$ Interest Expense.

REQ$2$ Journalize and post the transactions. Compute each account balance, and denote the balance as Balance. Omit explanations.

REQ$3$ Prepare the month ended January $31,2025,$ single step income statement of Splashed Canoe Company.

REQ$4$ Journalize and post the closing entries. Omit explanations. Denote each closing amount as Clo. and each balance as Balance. After posting all closing entries, prove the equality of debits and credits in the ledger by preparing a post$-$closing trial balance.

REQ$5$ Compute the gross profit percentage for January for Splashed Canoe Company.