On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Cash Equivalents Common Stock Deferred Revenue 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 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. 2. Prepare journal entries for items (j)(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 15-21). o. Depreciation for the month is $210. p. Salaries and wages totaling $1,300 have not yet been recorded for January 1631. 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 been 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 General Journal tab - Prepare the journal entries to record the transactions that occurred from January 1-31. Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries at January 31 to correctly report net income for the period. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted and adjusted balances in the General Ledger. Trial Balance tab - You may view either the unadjusted and adjusted trial balance by choosing from the drop-down. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted and adjusted balances will appear for each account based on your selection. Statement of Retained Earnings tab - Prepare the bank reconcilation for the year ended January 31. Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted and adjusted balances will appear for each account, based on your selection. Analysis tab - 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 Journal entry worksheet 2 3 4 1 5 6 7 21 > Received $2,420 cash on 1/1 from customers on account for recording services completed in December. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Unadjusted General Ledger Account Cash Cash Equivalents Debit Credit No. Date Debit Credit No. Balance Balance 3,760 Date Jan 01 Jan 01 1,680 Accounts Receivable Supplies No. Date Debit Credit Balance No. Date Debit Credit Balance 530 Jan 01 6,800 Jan 01 Prepaid Rent Equipment No. Date Debit Credit Balance No. Date Debit Credit Balance 29,400 Jan 01 2,430 Jan 01 Accumulated Depreciation Equipment Accounts Payable No. Date Debit Credit No. Debit Credit Balance Balance 6,500 Date Jan 01 Jan 01 8,400 Deferred Revenue Notes Payable (long-term) No. Date Debit Credit No. Date Debit Credit Balance Balance 3,900 Jan 01 Jan 01 12,200 Common Stock Retained Earnings No. Date Debit Credit No. Date Debit Credit Balance 10,700 Balance 2,900 Jan 01 Jan 01 (General Journal Trial Balance elow thay trial balance. Tne Choose oplioris lu usted, or du will be the values used to populate the income statement and balance sheet tabs. Unadjusted Pulse Recording Studio Trial Balance January 31, 2019 Account Title Debit Credit Cash $ Cash Equivalents 3,760 1,680 6,800 Accounts Receivable 530 2,430 29,400 6,500 Supplies Prepaid Rent Equipment Accumulated DepreciationEquipment Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock 8,400 3,900 12,200 10,700 2,900 Retained Earnings Total $ 44,600 $ 44,600 General Ledger Income Statement 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 Use the January 31 balance in Cash from General Ledger tab and the information ()-(n) to prepare a bank reconciliation. PRS's bank reported a January 31 balance of $5,930. Unadjusted Pulse Recording Studio Bank Reconciliation At January 31 Company's Books 5,930 Ending balance per Cash account Additions: Bank Statement $ $ 5,300 Ending balance per bank statement Additions: Deductions: Deductions: Up-to-date cash balance Up-to-date cash balance Income Statement Balance Sheet > Unadjusted Pulse Recording Studio Balance Sheet At January 31 Equipment, net Liabilities and Stockholders' Equity 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. On January 1, Pulse Recording Studio (PRS) had the following account balances. Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Cash Cash Equivalents Common Stock Deferred Revenue 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 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. 2. Prepare journal entries for items (j)(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 15-21). o. Depreciation for the month is $210. p. Salaries and wages totaling $1,300 have not yet been recorded for January 1631. 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 been 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 General Journal tab - Prepare the journal entries to record the transactions that occurred from January 1-31. Review the accounts as shown in the General Ledger and Trial Balance tabs. Then prepare the necessary adjusting entries at January 31 to correctly report net income for the period. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted and adjusted balances in the General Ledger. Trial Balance tab - You may view either the unadjusted and adjusted trial balance by choosing from the drop-down. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted and adjusted balances will appear for each account based on your selection. Statement of Retained Earnings tab - Prepare the bank reconcilation for the year ended January 31. Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted and adjusted balances will appear for each account, based on your selection. Analysis tab - 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 Journal entry worksheet 2 3 4 1 5 6 7 21 > Received $2,420 cash on 1/1 from customers on account for recording services completed in December. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Unadjusted General Ledger Account Cash Cash Equivalents Debit Credit No. Date Debit Credit No. Balance Balance 3,760 Date Jan 01 Jan 01 1,680 Accounts Receivable Supplies No. Date Debit Credit Balance No. Date Debit Credit Balance 530 Jan 01 6,800 Jan 01 Prepaid Rent Equipment No. Date Debit Credit Balance No. Date Debit Credit Balance 29,400 Jan 01 2,430 Jan 01 Accumulated Depreciation Equipment Accounts Payable No. Date Debit Credit No. Debit Credit Balance Balance 6,500 Date Jan 01 Jan 01 8,400 Deferred Revenue Notes Payable (long-term) No. Date Debit Credit No. Date Debit Credit Balance Balance 3,900 Jan 01 Jan 01 12,200 Common Stock Retained Earnings No. Date Debit Credit No. Date Debit Credit Balance 10,700 Balance 2,900 Jan 01 Jan 01 (General Journal Trial Balance elow thay trial balance. Tne Choose oplioris lu usted, or du will be the values used to populate the income statement and balance sheet tabs. Unadjusted Pulse Recording Studio Trial Balance January 31, 2019 Account Title Debit Credit Cash $ Cash Equivalents 3,760 1,680 6,800 Accounts Receivable 530 2,430 29,400 6,500 Supplies Prepaid Rent Equipment Accumulated DepreciationEquipment Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock 8,400 3,900 12,200 10,700 2,900 Retained Earnings Total $ 44,600 $ 44,600 General Ledger Income Statement 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 Use the January 31 balance in Cash from General Ledger tab and the information ()-(n) to prepare a bank reconciliation. PRS's bank reported a January 31 balance of $5,930. Unadjusted Pulse Recording Studio Bank Reconciliation At January 31 Company's Books 5,930 Ending balance per Cash account Additions: Bank Statement $ $ 5,300 Ending balance per bank statement Additions: Deductions: Deductions: Up-to-date cash balance Up-to-date cash balance Income Statement Balance Sheet > Unadjusted Pulse Recording Studio Balance Sheet At January 31 Equipment, net Liabilities and Stockholders' Equity 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