Journal entry worksheet On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted. Record the cost of goods sold. Note: Enter debits before credits. [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: 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 $12,060. OPC's policy Is to use the FIFO method, recorded using a perpetual Inventory system. - The $1,920 In Prepald 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-IIne method. - Employee wages are $4,000 per month. Employees are pald on the 16 th 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 perlod Include $250 of 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 perlod, and will be pald on March 31. - Deferred Revenue is for 30 units ordered and pald 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 arlses from a three-year, 9 percent bank loan recelved 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. Journal entry worksheet On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted. Record the cost of goods sold. Note: Enter debits before credits. [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: 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 $12,060. OPC's policy Is to use the FIFO method, recorded using a perpetual Inventory system. - The $1,920 In Prepald 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-IIne method. - Employee wages are $4,000 per month. Employees are pald on the 16 th 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 perlod Include $250 of 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 perlod, and will be pald on March 31. - Deferred Revenue is for 30 units ordered and pald 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 arlses from a three-year, 9 percent bank loan recelved 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
