full Accounting cycle$($adjustment journal entries, adjusted general ledger and adjusted trial balance$)$ During the first month of operations, the Banco Extrusion Inc, located in Ontario Canada, which specializes in auto component manufacturing completed the following transactions. Date January $20231$ George Leblanc started the business by making a deposit into company bank account for $$35,000,$ in exchange for $3,500$ shares of $$10$ par value common stock. $1$ Banco acquired a small machinist shop for $$25,000$ cash which represented$-$ Computer $-$ $$5,800,$ Furniture, $-$ $$6,500$ and Store equipment $$12,700.2$ Received bank loan for $$100,000,6\%$ annual interest. Payments are due on the last day of each month in the amount of $$4,000.2$ Paid rent for the $3-$month quarter January to March in the amount of $$3,000$ per month. $2$ Paid the premium on a $1-$year insurance policy, $$5,000.3$ Purchased $$800$ in office supplies $5$ Purchased inventory on account for $$60,000+13\%$ HST$.$ Terms $2/10,$ n$30.13$ Hired two full$-$time staff members, Lan and Liz, both who earn $$36,000$ a year and are paid bi$-$weekly with the first pay cheque being issued on January $27.$ Use the online PODC to calculate net pay. Assume basic payroll deductions for Ontario. They work five days a week $($Mon$-$Fri$).17$ Record cash sales for the week in the amount of $$10,000+13\%$ HST$.$ Cost of Goods Sold amounted to $$5,500.17$ Purchased extrusion machine and equipment from Patel Inc. for $$6,000.$ Paid $$1,500$ down and the balance was placed on account. Payments will be $$375\mathrm{.}00$ per month for $12$ months. The first payment is due Feb $1.$ Note: Use accounts payable for the balance due. Ignore HST and interest. $17$ Record sales on account for the week in the amount of $$12,000+$ HST$.$ Cost of goods sold was $$8,000.27$ Paid both Lan and Liz their bi$-$weekly pay. Calculate deductions for CPP$,$ EI and Ontario tax. Record employee portion only. $24$ Record cash sales for the week in the amount of $$15,000+13\%$ HST$.$ Cost of Goods Sold amounted to $$10,000.27$ Record sales on account for the week in the amount of $$15,000+$ HST$.$ Cost of goods sold was $$8000.28$ Paid accounts payable in full from January $5.30$ Record collection on outstanding accounts receivable for January in the amount of $$20,000+$ HST$.30$ Purchased inventory on account in the amount of $$6,000+$ HST$.30$ Paid loan payment of $$4,000$ plus interest of $$500.$ Accrue wages payable to Lan and Liz as of Jan $31.$

The telephone bill for January was received on Feb $7$th in the amount of $$250+$ HST$.$

Office supplies on hand were counted as $$800$ as of the end of the month.

The utility bill for Jan was received on Feb $3$rd in the amount of $$200($ignore HST$).$

The company received a $$2000+$ HST advertising bill on Feb $13$th for work completed in Jan.

We estimate approximately $2\mathrm{.}5\%$ of accounts receivable are uncollectible. Use the Allowance for Doubtful accounts $($AFDA$)$ method.

The company wants to record depreciation on a monthly basis using straight$-$line depreciation. $.$

$$ Computer $-3-$year useful life with no residual value

$$ Furniture$-5-$year useful life with $$3,500$ residual value

$$ Store equipment $-4-$year useful life with $$1,500$ residual value

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