January Transactions:

1. On 1/01, ABC paid employees salaries and wages that were previously accrued on December 31.

2. A truck is purchased on 1/02 for $10,000 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value.

3. ABC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10.

4. A $105 customer account is written off as uncollectible on 1/05.

5. & 6. On 1/06, recorded sales of 100 units of inventory on account. (5) Record the Sale. (6) Record the COGS.

7. Collections from customers on account, totaling $9,500, are recorded on 1/09.

8. On 1/10, ABC distributes the $0.50 cash dividend declared on January 4. The companys stock price is currently $10 per share.

9. On 1/11, ABC purchases 75 units of inventory on account for $4,875. All items were received.

10. & 11. The equipment purchased last year for $25,000 is sold on 1/15 for $20,000 cash. Record depreciation for the first half of January prior to recording the equipment disposal. (10) Record the depreciation. (11) Record the disposal

12. Payroll for January 1-15 is recorded and paid on 1/16.

13. Having sold the equipment, ABC pays off the note payable in full on 1/18. The amount paid is $20,360, which includes interest accrued in December and an additional $60 interest through January 18.

14. & 15. On 1/27, ABC records sales of 45 units of inventory on account. (14) Record the Sale. (15) Record the COGS.

16. & 17. A portion of the advance order from December (15 units) is delivered on 1/29. (16) Record the Sale. (17) Record the COGS.

18. On 1/30, ABC issued bonds with a total face value of $90,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. The bonds were issued at Face Value.

Adjusting Entries:

19. On 1/31, ABC records units-of-production depreciation on the vehicle (truck), which was driven 2,100 miles this month.

20. On 1/31, ABC estimates that 2% of sales on account will be uncollectible during the year. Adjust the applicable accounts using the allowance method for accounts receivable.

21. On 1/31, adjust for January rent expired.

22. On 1/31, accrue payroll for January 16-31 which will be paid to employees on February 1.

You will need to determine and enter the beginning balances and ending balances. The ending balance is calculated for you. You need to complete the stock issuance, net income and dividends to calculate the correct ending balances. If the cell should be zero, leave it blank. Decreases should be input as a negative amount.

	Common stock	additional paid in capital	retained earnings
beginning
stock issuances
net income
divendends
Ending

ABC Corporation was formed 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 as follows: $21, 10.ee 10, see 1,200 25,000 2,400 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Deferred Revenue Interest Payable Note Payable (long-term) Common Stock Additional Paid-In Capital, Common Retained Earnings 2. See 4.000 3ee 28.eae 12,000 18.ee 8. 399 The following information is relevant to the first month of operations in the following year: ABC sells its inventory at $200 per unit. ABC's January 1 inventory balance consists of 140 units at a total cost of $10.500. ABC's policy is to use the FIFO method, recorded using a perpetual inventory system. The $1,200 in Prepaid Rent on the December 31 Post-Closing Trial balance is a prepayment of January's rent. 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 $5,000 per month. Ignore payroll taxes and deductions. Deferred Revenue is for 20 units of inventory that were ordered and paid for in advance by two customers in late December. One order of 15 units is to be filled in January, and the other will be filled in February. Notes Payable arises from a three-year. 6 percent bank loan received on October 1 last year. The par value on the common stock is $2 per share. Unadjusted - ABC Corporation Trial Balance January 30, 2020 Unadjusted - Credit Debit 102,140 $ 1.200 10.000 ABC Corporation Income Statement For the Month Ended January 31 Revenues Sales Revenue Cost of Goods Sold Gross Profit Expenses Salaries and Wages Expense 4.875 $ s $ 32.000 11,950 20,050 Account Title Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent vehicles Accounts Payable Salaries and Wages Payable Deferred Revenue Bonds Payable Common Stock Additional Pa din Capital Common Stock Retained Emine Gain on Disposal of PPE Sales Revenue Cost of Goods Sold Depreciation Expense terest Expense Dividends 2.500 1000 20.000 12.000 18.000 8.300 Rent Expense 32 000 11.050 Depreciation Expense Bad Debt Expense Loss on Disposal of PPE Income from Operations Interest Expense Net Income 19,850 60 Total 3.000 160.270 $ 3 106,270 19,790