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MARIGOLD LTD. Post-Closing Trial Balance December 31, 2023 \begin{tabular}{lcc} \hline Cash & Debit & Credit \\ Accounts receivable & $70,000 & \\ Allowance for expected credit losses & 440,000 & \\ Inventory & & $22,000 \\ Estimated inventory returns & 356,000 & \\ Equipment & 10,000 & \\ Accumulated depreciation-equipment & 1,800,000 & 480,000 \\ Accounts payable & & 265,000 \\ Interest payable (pertains to bank loan payable) & & 4,000 \\ Employee income taxpayable & & 48,000 \\ CPP payable & & 26,000 \\ El payable & & 11,000 \\ Provisions & & 30,000 \\ \hline \end{tabular} The company had the following transactions during January 2024. When recording these transactions, use the item number listed instead of the date and also use the same item number if recording a subsequent adjustment pertaining to that item. 1. The bank loan bears interest at 4% and requires monthly instalment payments of $12,000 principal and interest on the first day of the month. The company properly accrued interest on the loan at the end of 2023. A loan payment was made on January 1,2024 , and the principal portion of that $12,000 payment was $8,000. 2. Accrued interest on the bank loan for the month of January 2024. 3. Early in January 2024, the company paid for a one-year insurance policy on equipment for $24,000. 4. Equipment has a useful life of five years and is depreciated on a double-diminishing-balance basis. 5. All the payroll-related liabilities were paid off in early January 2024. 6a. At the end of January, salaries for that month were paid out immediately. Gross salaries were $290,000 and amounts withheld from the employees' pay cheques included the related employee income tax of $39,400,CPP of $14,797, and El of $4,424. 6b. In addition to these amounts, the employer was required to contribute $14,797 to CPP and $6,194 to El. The salaries were paid but no amounts were remitted to the government regarding the salaries for January. 7. Paid a $9,000 income tax instalment. 8. Sales for the month of January were $860,000 and the cost of the inventory sold was $215,000. The company uses a perpetual inventory system. All sales were on credit. The compary expects a 5% return rate. 9. Accounts receivable collected during the month were $780,000. 10. A customer owing the company $16,000 went bankrupt during January. 11. Reviewed outstanding accounts receivable. Determined, through an aging of accounts, that the allowance for expected credit losses should be $30,000 at month end. 12a. Inventory costing $210,000 was purchased in January on credit. 12b. Office expenses of $40,000 were incurred on credit. 13. During the month of January, accounts payable amounting to $317,000 were paid. 14. The provisions at December 31, 2023, consisted of estimated damages from a lawsuit. In January, legal counsel felt that an additional $28,000 of damages had become probable that month. Any expenses relating to these damages are recorded in administrative expenses. 13. During the month of January, accounts payable amounting to $317,000 were paid. 14. The provisions at December 31, 2023, consisted of estimated damages from a lawsuit. In January, legal counsel felt that an additional $28,000 of damages had become probable that month. Any expenses relating to these damages are recorded in administrative expenses. 15. Deferred revenue consists of deposits from customers received in advance. No new deposits were received in January. but by the end of the month, management had estimated that deferred revenue at that time should be $5,000. Products sold to the customers that paid deposits cost 25% of the price they were sold at. 16. The company accepted product returns from credit customers in January. The sales value of these products was $36,000 and the company just reduced the receivable from the customer when the product was returned. The products returned were not damaged and cost 25% of the price they were sold at. 17. The company declared and paid dividends amounting to $5,000 in January. 6a. Salaries Expense 290,000 Employee income Tax Payable 39400 CPP Payable El Paryable Cash 6b. EI Payable 6194 CPP Payable 14797 7. Income Tax Expense Cash 8a. Accounts Reccivable Sales Refund Liability (To record sales) 8b. Cost of Goods Sold Estimated Inventory Returns Inventory \begin{tabular}{|r|r|} \hline 86000 & \\ \hline & \\ \hline & \\ & \\ & \\ & \\ & \\ & \\ & 1075000 \\ \hline \end{tabular} (To record Cost of Goods Sold) 9. Cash 780,000 Accounts Receivable 9. Cash Accounts Receivable 10. Allowance for Expected Credit Losses 16000 Accounts Receivable 11. Allowance for Expected Credit Losses Accounts Receivable 12a. Imventory Accounts Payable 12b. Administrative Expenses Accounts Payable 13. Accounts Payable 13. Accounts Payable Cash 16. Estimated Inventory Returns Accounts Receivable (To record the returns) Imventory Cost of Goods Sold (To record the cost of inventory returned) 17. Dividends Declared 5000 Cash 5000 Adjustments

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