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Lacorte Inc., set up as a privately held corporation, operating as a ready to wear garments retailer, of which 100% of the Common Shares are owned by Ralph Lacorte. You were hired to account for transactions for the month of April 2022, complete month end processing, prepare the financial statements and perform a financial ratio analysis as of the end of that month. They use perpetual inventory system and use the weigted average cost method to determine value for the inventory. Its balance sheet as at March 31, 2022, is presented below
LaCorte Inc,
Classified Balance Sheet
As of March 21, 2022
Assets Cash $58100 Accounts receiveble 16,870 Merchandise inventory 30,240 Prepaid insurance 6,200 Total current Assets 111,410 Long Term Assets Equipment 158,000 Accumulated depreciation -60,000 98,000 Total Assets $209,410
Liabilities Current Liabilities Accounts payable $12,000 unearned revenue $12,500 salaries payable $6,100 current portion of bank loan 17,280 Total Current Liabilities
$47,880 Non-Current Liabilities Non-Current Portion of bank loan 25,920 TOTAL LIABILITIES $73,800 Shareholders Equity Common shares 76,000 retained earnings 59,610 Total shareholders equity 135,610 Total Liability and equity
$209,410
The bank loan has an annual interest rate of 7% and has monthly principal payment of $1,440. Required: b) Post the above journal entries to the accounts. c) Complete the bank reconciliation report. e) Complete the 10-column worksheet. e) Post the adjusting entries to the accounts f) Journalize and post the adjustments under the financial statements tab of this workbook. Transactions for the month of April: company's accounts: Record additonal employee- expenses 521,501.80521,507.80 General Ledger Accounts \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Merchandise Inventory } & GL No: & 120 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 30,240,00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{4}{|l|}{ Prepaid Insurance } & GL No: & 125 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 6,200.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{4}{l|}{ Equipment } & GL No: & 140 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 158,000.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|l|c|} \hline Account: & \multicolumn{2}{l|}{ Accumulated Depreciation } & GL No: & 145 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 60,000.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{l|}{ Accounts Payable } & GL No: & 200 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 12,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ CPP Payable } & GL No: & 220 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & \multicolumn{2}{|c|}{0.00} \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{|l|}{ El Payable } & & GL No: & 225 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{|l|}{ Income Tax Payable } & GL No: & 230 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Salaries Payable } & \multicolumn{2}{c|}{ GL No: } & 235 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & \multicolumn{2}{|l|}{ Opening Balance } & & & 6,100.00 & CR \\ \hline & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{3}{|l|}{ Bank Loan } & & GL No: & 245 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 43,200.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Common Shares } & GL No: & \multicolumn{3}{|l|}{300} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 76,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|l|c|} \hline Account: & \multicolumn{2}{l|}{ Retained Earnings } & \multicolumn{2}{l|}{ GL No: } & 305 \\ \hline Date & Description & PR & DR & CR & Balance (DR or CR) \\ \hline & Opening Balance & & & & 59,610.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Sales Revenue } & GL No: & 400 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Sales Discounts } & \multicolumn{1}{l|}{ GL No: } & \multicolumn{4}{l|}{405} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Sales Returns and Allowances } & GL No: & 410 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: \multicolumn{3}{|l|}{ Interest Revenue } & \multicolumn{2}{|l|}{ GL No: } & 420 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{3}{l|}{ Cost of Goods Sold } & GL No: & 500 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Account: & \multicolumn{2}{|l|}{ Employee Benefits Expense } & GL No: & 510 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Depreciation Expense } & GL No: & 515 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Insurance Expense } & & GL No: & 520 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{3}{|l|}{ Interest Expense } & & GL No: & 525 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Office Supplies Expense } & GL No: & 530 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{3}{l|}{ Rent Expense } & GL No: & 535 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Salaries Expense } & GL No: & 540 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Bank Charges Expense } & GL No: & 545 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{|l|}{ Entertainment Expense } & GL No: & 555 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Shipping Expense } & \multicolumn{2}{l|}{ GL No: } & 560 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} The bank loan has an annual interest rate of 7% and has monthly principal payment of $1,440. Required: b) Post the above journal entries to the accounts. c) Complete the bank reconciliation report. e) Complete the 10-column worksheet. e) Post the adjusting entries to the accounts f) Journalize and post the adjustments under the financial statements tab of this workbook. Transactions for the month of April: company's accounts: Record additonal employee- expenses 521,501.80521,507.80 General Ledger Accounts \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Merchandise Inventory } & GL No: & 120 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 30,240,00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{4}{|l|}{ Prepaid Insurance } & GL No: & 125 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 6,200.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{4}{l|}{ Equipment } & GL No: & 140 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 158,000.00 & DR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|l|c|} \hline Account: & \multicolumn{2}{l|}{ Accumulated Depreciation } & GL No: & 145 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 60,000.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{l|}{ Accounts Payable } & GL No: & 200 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 12,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ CPP Payable } & GL No: & 220 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & \multicolumn{2}{|c|}{0.00} \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{|l|}{ El Payable } & & GL No: & 225 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{|l|}{ Income Tax Payable } & GL No: & 230 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 0.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Salaries Payable } & \multicolumn{2}{c|}{ GL No: } & 235 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & \multicolumn{2}{|l|}{ Opening Balance } & & & 6,100.00 & CR \\ \hline & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{3}{|l|}{ Bank Loan } & & GL No: & 245 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 43,200.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Common Shares } & GL No: & \multicolumn{3}{|l|}{300} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{l|}{ Balance (DR or CR) } \\ \hline & Opening Balance & & & & 76,000.00 & CR \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|l|c|} \hline Account: & \multicolumn{2}{l|}{ Retained Earnings } & \multicolumn{2}{l|}{ GL No: } & 305 \\ \hline Date & Description & PR & DR & CR & Balance (DR or CR) \\ \hline & Opening Balance & & & & 59,610.00 & CR \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Sales Revenue } & GL No: & 400 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|l|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Sales Discounts } & \multicolumn{1}{l|}{ GL No: } & \multicolumn{4}{l|}{405} \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{l|}{ Sales Returns and Allowances } & GL No: & 410 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: \multicolumn{3}{|l|}{ Interest Revenue } & \multicolumn{2}{|l|}{ GL No: } & 420 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{3}{l|}{ Cost of Goods Sold } & GL No: & 500 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Account: & \multicolumn{2}{|l|}{ Employee Benefits Expense } & GL No: & 510 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Depreciation Expense } & GL No: & 515 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Insurance Expense } & & GL No: & 520 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{3}{|l|}{ Interest Expense } & & GL No: & 525 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Office Supplies Expense } & GL No: & 530 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{3}{l|}{ Rent Expense } & GL No: & 535 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{4}{|l|}{ Salaries Expense } & GL No: & 540 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|l|} \hline Account: & \multicolumn{2}{l|}{ Bank Charges Expense } & GL No: & 545 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|c|c|c|c|c|} \hline Account: & \multicolumn{2}{|l|}{ Entertainment Expense } & GL No: & 555 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|l|l|l|c|} \hline Account: & \multicolumn{2}{l|}{ Shipping Expense } & \multicolumn{2}{l|}{ GL No: } & 560 \\ \hline Date & Description & PR & DR & CR & \multicolumn{2}{|c|}{ Balance (DR or CR) } \\ \hline & & & & & & \\ \hline & & & & & & \\ \hline \end{tabular}
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