On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Cash Equivalents cas Common Stock Deferred Revenue Sale Equipment Notes Payable (long-term) Prepaid Rent Retained Earnings Supplies $ 8,400 6,800 6,500 3,760 1,680 10,700 3,900 29,400 12,200 398 2,430 2,900 530 The following transactions occurred during January. a. Received $2,420 cash on 1/1 from customers on account for recording services completed in December b. Wrote checks on 1/2 totaling $4,280 for amounts owed on account at the end of December. c. Purchased and received supplies on account on 1/3, at a total cost of $200. d. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December. e. Received $4,850 cash on 1/5 from customers for recording sessions started and completed in January. f. Wrote a check on 1/6 for $4,040 for an amount owed on account. g. Converted $1,040 of cash equivalents into cash on 1/7. h. On 1/15, completed EFTs for $1,390 for employees' salaries and wages for the first half of January i. Received $2,940 cash on 1/31 from customers for recording sessions to start in February. Required: 1. Prepare journal entries for the January transactions. Review the 'General Ledger' and the unadjusted 'Trial Balance' Tabs to see the effect of the transactions on the account balances. 2. Prepare journal entries for items (1)(n) from the bank reconciliation. j. The bank deducted $470 for an NSF check from a customer deposited on January 5. k. The check written January 6 has not cleared the bank, but the January 2 payment has cleared. 1. The cash received and deposited on January 31 was not processed by the bank until February 1. m. The bank added $4 cash to the account for interest earned in January. n. The bank deducted $4 for service charges. 3. Prepare adjusting journal entries on 1/31 in 'General Journal' Tab. (these are shown as items 15 to 21). o. Depreciation for the month is $210. p. Salaries and wages totaling $1,300 have not yet been recorded for January 16 to 31. q. Prepaid Rent will be fully used up by March 31. r. Supplies on hand at January 31 were $200. s. Received $200 invoice for January electricity charged on account to be paid in February but is not yet recorded. t. Interest on the promissory note of $28 for January has not yet been recorded or paid. u. Income tax of $1,200 on January income has not yet bee recorded or paid. 4. Review the adjusted 'Trial Balance' as of January 31. 5. Prepare an income statement for the period ended January 31 in the 'Income Statement' Tab. 6. Prepare a bank reconciliation in the 'Bank Reconciliation' Tab. 7. Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab. 8. Using the information from the requirements above, complete the Analysis' tab. Requirement General Journal General Ledger Trial Balance Income Statement Bank Reconcilation Balance Sheet Analysis Prepare the journal entries to record transactions (a) through (n). Then prepare the necessary adjusting entries (0) through (u) to correctly report net income for the period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X 1 Received $2,420 cash on 1/1 from customers on account for recording services completed in December. Record the transaction. 21 > ng 2 Wrote checks on 1/2 totaling $4,280 for amounts owed on account at the end of December. Record the transaction. 3 Purchased and received supplies on account on 1/3, at a total cost of $200. Record the transaction. Credit 4 Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December. Record the transaction. 5 Received $4,850 cash on 1/5 from customers for Note : - journal entry has been entered 5 Received $4,850 cash on 1/5 from customers for recording sessions started and completed in January. Record the transaction. 6 Wrote a check on 1/6 for $4,040 for an amount owed on account. Record the transaction. 7 Converted $1,040 of cash equivalents into cash on 1/7. Record the transaction. 8 On 1/15, completed EFTs for $1,390 for employees' salaries and wages for the first half of January. Record the transaction. 9 Received $2,940 cash on 1/31 from customers for recording sessions to start in February. Record the 10 The bank deducted $470 for an NSF check from a customer deposited on January 5. Record the transaction. 11 The check written January 6 has not cleared the bank, but the January 2 payment has cleared. Record the transaction. 12 The cash received and deposited on January 31 was not processed by the bank until February 1. Record the transaction. 13 The bank added $4 cash to the account for interest earned in January. Record the transaction. 14 The bank deducted $4 for service charges. Record the transaction 15 Depreciation for the month $210. Record the transaction. 16 Salaries and wages totaling $1,300 have not yet been recorded for January 16-31. Record the transaction. 17 Prepaid Rent will be fully used up by March 31. Record the transaction. 18 Supplies on hand at January 31 were $200. Record the transaction. 19 Received $200 invoice for January electricity charged on account to be paid in February but is not yet recorded. Record the transaction. 19 Received $200 invoice for January electricity charged on account to be paid in February but is not yet recorded. Record the transaction. 20 Interest on the promissory note of $28 for January has not yet been recorded or paid. Record the transaction. 21 Income tax of $1,200 on January income has not yet been recorded or paid. Record the transaction. Requirement General Journal General Ledger Trial Balance Income Statement Bank Reconcilation Balance Sheet Analysis Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted from the dropdown, which will then populate the balances in those accounts from the trial balance. Unadjusted Pulse Recording Studio Income Statement For the Month Ended January 31 Requirement General Journal General Ledger Trial Balance Income Statement Bank Reconcilation Balance Sheet Analysis Use the January 31 balance in Cash from General Ledger tab and the information (1)-(n) to prepare a bank reconciliation. PRS's bank reported a January 31 balance of $5,930. Unadjusted Pulse Recording Studio Bank Reconciliation Bank Statement Ending balance per bank statement Additions: At January 31 Company's Books $ 5,930 Ending balance per Cash account Additions: $ 5,300 Deductions: Deductions: Up-to-date cash balance Up-to-date cash balance Requirement General Journal General Ledger Trial Balance income Statement Bank Reconcilation Balance Sheet Analysis Use the dropdowns to select the accounts properly included on the balance sheet. The unadjusted, or adjusted balances will appear for each account, based on your selection. Unadjusted Pulse Recording Studio Balance Sheet At January 31 Equipment, net Liabilities and Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income Statement Bank Reconcilation Balance Sheet Analysis Using the information from the requirements above, complete the 'Analysis' tab. Calculate the current ratio at January 31. (Round your answer to 2 decimal places.) Current Ratio Indicate whether PRS has met its loan covenant that requires a minimum current ratio of 1.2. Calculate the net profit margin at January 31. (Round your answer to 2 decimal places.) Net Profit Margin % Indicate whether PRS has achieved its objective of 10 percent