One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31 Accounts Receivable laventory Deferred ovu (4 Notes Payable long-te "credit balance. $ 39,260 16,410 450+ 3,540 6,400 1,630 16,00 9,900 The following information is relevant to the first month of operations in the following year OTP wil sell inventory at $160 per unit. OTPs January 1 inventory balance consists of 50 units at a total cost of $3,500. OTP's policy is to use the FIFO method recorded using a perpetual inventory system In December, OTP received a $6.400 payment for 40 units OTP is to deliver in January, this obligation was recorded in De Revenue Rent of $1,200 was unpaid and recorded in Accounts Payable at December 31 OTP'S notes payable mature in three years, and accrue interest at a 10% annual rate January Transactions Included in OTP's January 1 Accounts Receivable balance is a $3,000 balance due from Jeff Lert Jeff having cash flow problems and cannot pay the $3.600 balance at this time On Ovot, OTP arranges with Jeff to convert the $3.600 balance to a six- month note, a 10% annual interest Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of the year BOTP paid a $340 insurance premium on 0102, covering the month of January, the payment is recorded directly as an expense COTP purchased an additional 200 units of inventory from a suppler on account on 0105 at a total cost of $10,000, with terms N30 OTP paid a courier $400 cash on 05/05 for same-day delivery of the 200 units of inventory The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 0106 OTP paid the first 2 weeks' wages to the employees on 0136. The total peld in $4,030 Wrote off a $820 customer's account balance on 0118, OTP uses the allowance method, not the drect wit off method Paid $2,400 on 019 for December and January rent. See the earlier bufets regarding the December porton The January portion will expre soon, so it is charged directly to expense LOTP recovered $340 cash on 01/26 from the customer whose account had previously been written off on 08 m. An unrecorded $170 utility bill for January arrived on 01/27 is due on 02/15 and will be paid the in Sales of 70 units of inventory during the period of 0110-0128, with terms n30, are recorded on 01/28 the An ecoded $170 unity till for January arrived on 0127 is due on 02/5 and will be Sales of 70 units of invertory during the period of 010-01/28 with em 30, are recorded on 01/28 Of the sales recorded on 0928, 10 units are returned to OTP on 0130. The inventory is not damaged and can be OTP charges ses returns to a contra-revenue account On 01:31, OTP records the $4030 employee salary that is owed but will be paid February 1 a OTP uses the aging method to estimate and adjust for uncolectible accounts on 05/31. All of OTP's accounts receivable Salla single aging category for which 10% is estimated to be uncolectie update the balances of both relevant accounts prior to determining the appropriate adjustment) Accue interest for January on the notes payable on 0131 Accue interest for January on Jeff Lebrotski's note on 0135 e General Journal tal-Prepare all January journal entries and adjusting entries for ems (a) to () Review Ledger and the adjusted "The Balance Tabs to see the effect of the transactions on the account Income Statement tab-Prepare an income statement for the period ended January 31 in the comment Statement of Retained earnings Prepare a statement of retained earning in the Statement of Retained earnings Te Balance Sheet Lab Prepare a classified balance shest as of January 31 in the Balance Sheet Tab Analysing the information from the requirements above, compte the Py Next> Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Analysis General Journal tab - Prepare all January journal entries and adjusting entries for items (a) to (s). 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 Retained earnings - Prepare a statement of retained earning in the 'Statement of Retained earnings' Tab. 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. Requirement General Journal > January Transactions a. Included in OTP's January 1 Accounts Receivable balance is a $3,600 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $3,600 balance at this time. On 01/01, OTP arranges with Jeff to convert the $3,600 balance to a six- month note, at 10% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year. b. OTP paid a $340 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense. c. OTP purchased an additional 200 units of inventory from a supplier on account on 01/05 at a total cost of $10,000, with terms n/30. d. OTP paid a courier $400 cash on 01/05 for same-day delivery of the 200 units of inventory. e. The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06. f. On 01/07, OTP received a purchase allowance of $1,600 on account, and then paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in c). g. Sales of 60 units of inventory occurring during the period of 01/07-01/10 are recorded on 01/10. The sales terms are n/30. h. Collected payments on 01/14 from sales to customers recorded on 01/10. i. OTP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $4,030. J. Wrote off a $820 customer's account balance on 01/18. OTP uses the allowance method, not the direct write-off method. k. Paid $2,400 on 01/19 for December and January rent. See the earlier bullets regarding the December portion. The January portion will expire soon, so it is charged directly to expense. 1. OTP recovered $340 cash on 01/26 from the customer whose account had previously been written off on 01/18. m. An unrecorded $170 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then. n. Sales of 70 units of inventory during the period of 01/10-01/28, with terms n/30, are recorded on 01/28. o. Of the sales recorded on 01/28, 10 units are returned to OTP on 01/30. The inventory is not damaged and can be resold. OTP charges sales returns to a contra-revenue account. p. On 01/31, OTP records the $4,030 employee salary that is owed but will be paid February 1. q. OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP's accounts receivable fall into a single aging category, for which 10% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment.) r. Accrue interest for January on the notes payable on 01/31 s. Accrue interest for January on Jeff Letrotski's note on 01/31 (see a). One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31: Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Deferred Revenue (40 units) Accounts Payable Notes Payable (long-term) $ 39,260 16,410 450* 3,500 6,400 1,670 36,000 9,900 4,750 Common Stock Retained Earnings * credit balance. The following information is relevant to the first month of operations in the following year: OTP will sell inventory at $160 per unit. OTP's January 1 inventory balance consists of 50 units at a total cost of $3,500. OTP's policy is to use the FIFO method, recorded using a perpetual inventory system. In December, OTP received a $6,400 payment for 40 units OTP is to deliver in January; this obligation was recorded in Deferred. Revenue. Rent of $1,200 was unpaid and recorded in Accounts Payable at December 31. OTP's notes payable mature in three years, and accrue interest at a 10% annual rate.