1 Part 1 of 2 2.33/12.5 paints awarded Scored Required information [The following information applies to the questions displayed below.] One Product Corporation (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent 21,300 8,200 1,015 12,240 1,860 40.600 3,960 Equipment Accumulated Depreciation Accounts Payable 0 Sales Tax Payable 500 FICA Payable 600 Withheld Income Taxes Payable 500 Salaries and Wages Payable 1,600 Unemployment Tax Payable 300 Deferred Revenue 4,500 Interest Payable Notes Payable (long-term) 23,300 Common Stock 17,000 Additional Paid-In Capital, Common 19,831 Retained Earninga 14,730 Treasury Stock 4,000 The following information is relevant to the first month of operations in the following year. OPC sells its inventory at $150 per unit, plus sales tax of 6 percent. OPC's January 1 inventory balance consists of 180 units at a total cost of $12,240. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. The $1,860 in Prepaid Rent relates to a payment made in December for January rent this year. The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight-line method. Employee wages are $4,000 per month. Employees are paid on the 16th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay period include $250 of income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are paid 1 Part 1 of 2 2.33/12.5 points awarded Scared income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are paid monthly on the second day of the following month. In addition, unemployment taxes of $50 are accrued each pay period, and will be paid on March 31. Deferred Revenue is for 30 units ordered and paid for in advance by two customers in late December. One order of 25 units is to be filled in January, and the other will be filled in February Notes Payable arises from a three-year, 9 percent bank loan received on October 1 last year The par value on the common stock is $2 per share. Treasury Stock arises from the reacquisition of 500 shares at a cost of $8 per share January Transactions a. On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31. b. A truck is purchased on 1/02 for $8,000 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value. c. Payroll withholdings and employer contributions for December are remitted on 1/03 d. OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10 e. A $1,015 customer account is written off as uncollectible on 1/05. On 1/06, recorded sales of 175 units of inventory on account. Sales tax is charged but not yet collected or remitted to the state. Sales taxes of $500 that had been collected and recorded in December are paid to the state on V07, n. On 1/08, OPC issued 300 shares of treasury stock for $2,400. Collections from customers on account, totaling $17,821, are recorded on 109. On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share. k OPC purchases on account and receives 70 units of inventory on 1/11 for $4,200 The equipment purchased last year for $40,600 is sold on 1/15 for $41,200 cash. Record depreciation for the first half of January prior to recording the equipment disposal m. Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. n. Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $23.920, which includes interest accrued in December and an additional $96 interest through January 17.1 o On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted. p. A portion of the advance order from December (25 units) is delivered on 1/29. No sales tax is collected on this transaction because the customer is a US governmental organization that is exempt from sales tax To obtain funds for purchasinn now ansinment nor not honde nn 1/30 with a total fara valo nf $103.000 stat BACK 1 Part 1 of 2 2.33/12.5 points awarded Scored This window shows your responses and what was marked correct and incorrect from your previous attempt. me equipment parchased last year for 340,000 IS SOID DIT 115 TO 341,200 Case Record beprecation for Eve mest far of January prior to recording the equipment disposal. m. Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. n. Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $23.920, which includes Interest accrued in December and an additional $96 interest through January 17. o On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted. p. A portion of the advance order from December (25 units) is delivered on 1/29. No sales tax is collected on this transaction because the customer is a U.S. governmental organization that is exempt from sales tax q. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $103,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $93,381 from the bond Issuance, which implies a market interest rate of 7 percent. On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 2,000 miles this month. s. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method. t On 1/31, adjust for January rent expired. u. Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. Accrue OPC's corporate income taxes on 1/31, estimated to be $5,090. Statement of General Requirement Journal General Ledger Trial Balance Income Statement Stockholders Balance Sheet Analysis Equity Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger and the adjusted Trial Balance' Tabs to see the effect of the transactions on the account balances. (If no entry is required for a transaction/evcht, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit Requirement Statement of General Journal General Ledger Trial Balance Income Statement Stockholders Balance Sheet Analysis Equity General Journal tab Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adjusted Trial Balance' Tabs to see the effect of the transactions on the account balances. Trial Balance tab Review the adjusted Trial Balance' as of January 31. Income Statement tab Prepare an income statement for the period ended January 31 in the 'Income Statement' Tab. Statement of Stockholders' Equity tab- Prepare the statement of stockholders' equity for the month ended January 31. Balance Sheet tab - Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab. Analysis tab - Using the information from the requirements above, complete the 'Analysis' tab. General Journal > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 2 5 warded ed Required information Choose the appropriate accounts to be reported on the income statement. Select the 'adjust then populate the balances in those accounts from the trial balance. Adjusted ONE PRODUCT CORPORATION Income Statement For the Month Ended January 31 Loss(Gain) on Disposal Income from Operations Income before Income Tax Expense "Red text indicates no reennnes we a Required information Requirement General Journal General Ledger Statement of Trial Balance Income Statement Stockholders Balance Sheet Analysis Equity The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. You will need to determine and enter the beginning and ending balances. Jed Adjusted Beginning Stock Issuances Net Income Dividends Ending ONE PRODUCT CORPORATION Statement of Stockholders' Equity For the Month Ended January 31 Common Stock Additional Paid-In Capital, Common Retained Earinings Treasury Stock * $ 14,730 0 (4,000) 10,730 * 1 Part 1 of 2 Was Red correct and incorrect from your previous attempt. s. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method. t. On 1/31, adjust for January rent expired. u. Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. v. Accrue OPC's corporate income taxes on 1/31, estimated to be $5,090. 2.33/12.5 points awarded Scored Requirement General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity Analysis Using the information from the requirements above, complete the 'Analysis' tab. What was OPC's total payroll cost for January? Total Payroll Cost Will the carrying value of the bond increase or decrease after recording interest in February? What is the interest payment OPC wil need to pay annually on the bond? Interest Payment What was the gain or loss was recognized on the issuance of Treasury Stock on January 87