Wascana Ltd. is a small wholesaler of restaurant supplies. The company's post-closing trial balance at December 31, 2017, the end of its fiscal year, is presented below:

The company had the following transactions during January 2018. When recording these transactions, use the item number listed in lieu of the date and also use that same item number if recording a subsequent adjustment pertaining to that item.
1 The bank loan bears interest at 4% and requires monthly payments on the first day of the month consisting of a fixed principal, payment of $8,000, plus interest, which was properly accrued at the end of 2017. A loan payment was made on January 1, 2018.
2 Accrue interest on the bank loan for the month of January 2018.
3 Early in January 2018, 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 of the payroll-related liabilities were paid off in early January 2018.
6 At the end of January, salaries for that month were paid out. Gross salaries were $290,000 and amounts withheld from the employees' paycheques included the related employee income tax of $52,000, CPP of $14,000, and EI of $5,452. In addition to these amounts, the employer was required to contribute $14,000 to CPP and $7,633 to EI. 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 $745,000 and the cost of the inventory sold was $270,000. The company uses a perpetual inventory system. All sales were on credit.
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 doubtful accounts were $30,000 at month end.
12 Inventory costing $250,000 was purchased in January on credit. Also, administrative expenses of $49,000 were incurred on credit.
13 During the month of January, accounts payable amounting to $350,000 were paid.
14 The provisions at December 31, 2017, consisted of estimated damages from a lawsuit. In January, legal counsel felt that an additional $20,000 of damages had become probable that month. Any expenses relating to these damages are recorded in administrative expenses.
15 Unearned revenue consists of deposits from customers received in advance. No new deposits were received in January, but by the end of the month, management has estimated that unearned revenue at that time should be $7,000. Products sold to these customers that paid deposits cost 25% of the price they were sold at.
16 The company declared and paid out dividends amounting to $4,000 in January.
Instructions
(a) Prepare T accounts and enter the December 31 balances.
(b) Record the January transactions and adjustments.
(c) Post the journal entries from part (b) to the T accounts.
(d) Prepare an adjusted trial balance at January 31, 2018.
(e) Prepare a
(1) Income statement and
(2) Statement of changes in equity for the month ended January 31, 2018, and
(3) Statement of financial position at January 31, 2018.

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WASCANA LTD Post-Closing Trial Balance December 31, 2017 Debit Credit Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Accounts payable Interest payable Employee income tax payable CPP payable EI payable Provisions Unearned revenue Bank loan payable Common shares Retained earnings $80,000 480,000 $24,0o0 356,000 1,800,00o 480,000 321,000 4,000 52,000 28,000 12,000 35,000 12,000 1,200,000 60.000 $2,716,000 $2,716,000