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can you help with the journal entries please. also with the analysis Required information [The following information applies to the questions displayed below.) One Product
can you help with the journal entries please. also with the analysis
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 Equipment Accumulated Depreciation Accounts Payable Sales Tax Payable TICA Payable Withheld Income Taxes Payable Salaries and Wages Payable Unemployment Tax Payable Deferred Revenue Interest Payable Notes Payable (long-term) Common Stock Additional Paid-In Capital, Common Retained Earnings Treasury Stock 21,380 8,280 1,015 12,240 1,860 40,600 3,960 0 500 600 500 1,600 300 4,500 524 23,300 17,000 19,831 14,730 4,000 a. On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31. b. A truck is purchased on 102 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 105. 1. 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. 9. Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07. h. On 1/08, OPC Issued 300 shares of treasury stock for $2,400. 1. Collections from customers on account, totaling $17,821. are recorded on 109. J. 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. 1. 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. 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 $93,181 from the bond Issuance, which implies a market interest rate of 7 percent. On 131, 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. 1 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. General General Requirement Statement of Income Trial Balance Journal Ledger 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. 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 will 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 8 Step by Step Solution
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