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Marshall Convenience Store Ltd. is a small retailer operated by a number of shareholders from a First Nations community. It reports under IFRS at the request of the creditor holding the note payable. The companys post-closing trial balance at December 31, 2020, the end of its fiscal year, is presented below:

MARSHALL Convenience Store LTD. Post-Closing Trial Balance December 31, 2020
		Debit		Credit
Cash		$5,100
Accounts receivable		122,400
Allowance for doubtful accounts				$8,160
Inventory		61,200
Estimated inventory returns		1,020
Prepaid insurance		12,240
Equipment		183,600
Accumulated depreciation				81,600
Accounts payable				69,360
Employee income tax payable				6,936
CPP payable				3,264
EI payable				1,224
Refund liability				3,060
Dividends payable				5,100
Notes payable (due 2023)				122,400
Common shares				51,000
Retained earnings				33,456
		$385,560		$385,560

The company had the following transactions during January 2021. When recording these transactions, use the item number listed instead of the date. The company records adjusting entries on a monthly basis.

1.		Paid off accounts payable of $56,100.
2.		Purchased inventory costing $27,540 on credit.
3.		Sold inventory that cost $30,600 on credit for $104,040. However, $2,040 of the amount sold is expected to be refunded due to returns and the cost of the inventory expected to be returned is $816.
4.		Collected accounts receivable amounting to $111,180.
5.		Wrote off $5,100 of uncollectible accounts receivable.
6.		Received inventory returns from customers and reduced accounts receivable from these customers for $2,856. The inventory that these customers returned was in excellent condition and had a cost of $918.
7.		Paid all salary-related liabilities outstanding at the beginning of January.
8.		Paid salaries to employees, who earned a total of $40,800 of gross pay less employee income tax, CPP, and EI of $7,344, $2,081, and $661, respectively. Withholdings will be remitted in February.
9.		Recorded employee benefits expense relating to the employers share of CPP of $2,081 and EI of $925.
10.		Paid rent of $9,180.
11.		Paid dividends owing on payment date at the beginning of the month.
12.		Expired $1,020 of prepaid insurance.
13.		Paid monthly interest on the 4%, $122,400 note payable.
14.		Sold equipment at the end of January for $14,280 cash. The equipment had a cost of $20,400 and a carrying amount of $12,240.
15.		Purchased new equipment at the end of the month costing $10,200 by issuing common shares.
16.		Incurred depreciation on equipment on a straight-line basis. The equipment has a useful life of six years and no residual value.
17.		Estimated at the end of January that $4,284 of accounts receivable was uncollectible.
18.		Estimated that income tax incurred in January amounted to $4,080. This amount will be paid next month.

Prepare T accounts and enter the December 31 balances.

Cash

Accounts Receivable

Allowance for Doubtful Accounts

Inventory

Estimated Inventory Returns

Prepaid Insurance

Equipment

Accumulated DepreciationEquipment

Accounts Payable

Income Tax Payable

Employee Income Tax Payable

CPP Payable

EI Payable

Refund Liability

Dividends Payable

Notes Payable

Common Shares

Retained Earnings

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