One Trick Pony (OTP) incorporated and began operations near the end of the year resulting in the following post-cusing balances December 31 Cash Accounts Receivable Allowance for doubtful Account I Deferred (42 unita A Table uts Payable ( Con rock Retained termin credit balance 34.410 450 3,500 4,400 3,470 36,000 9,900 The following information is relevant to the first month of operations in the following year OTP will set inventory at $160 per unit OTPs January 1 inventory balance consists of 50 units at a total cost of $3.500 01'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 Defe Revenue. Rent of $1,200 was unpaid and recorded in Accounts Payable at December 31 OTP notes payable mature in three years, and accrue interest at a 10% annu January Transactions a included in Of January 1 Accounts Receivable balance is a $3.600 balance due from Jeff Lebrot Jeff having cash flow problems and cannot pay the $3.600 belance at this time. On 0101, OTP aanges with Jeff to convert the $3.600 balance to a si 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 0102. covering the month of January, the payment is recorded directly as an expense OTP purchased an additional 200 units of inventory from a suppler on account on 0105 at a total cost of $10,000, with 130 OTP paid a couter $400 cash on 0105 for same-day delivery of the 200 units of inventary The 40 units the OP's customer paid for in advance in December are delivered to the customer s On 01/07, 01 received a purchase allowance of $1000 on account, and than paid the e wed to the supplier for the 105 purchase of inventory ind tnecessary to see the beac 30 p Sales of 60 unts of inventory occurring during the period of 01/07-0110 ane seconded on 010 The sales tema A Colected payments on 0514 from sales to atomers recorded on 0110 OTP paid the first 2 weeks wages to the employees on 0916. The total paid $4.000 Wote of a $620 customer's account balance on 0118 OTP uses the allowance method, not the direct with affo $2,4000 for December and January rent. See the ear bulets regarding the December portion The January poo will expire soon so is charged directly to expe OTP recovered $340 on 0120 bom the custom hose account had previously been when off on 01 An recorded $170 unity bill for Januery emved s due on 0205 and wit Sales of 70 units of inventory during the perod of evo-0128, with a of the sales recorded on 01/28 10 sts are returned to OTP en charges stan venue accous On 05/31, OTP ecords the $4000 employee salary OTP uses the aging method to estime and aquat estimated to t 0930 The very ut will be paid F amaged and can be P lectible accounts on 0931 at of Os uncollection update the balances of both ivant acco 90 13 ZA 14 S4 95 96 55 % 100 4 37 &7 Dill 15 .8 Q W E R T YU 2 #3 A S D F G H J s. r. Accrue interest for January on the notes payable on U Accrue interest for January on Jeff Letrotski's note on 01/31 (see al Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Balance Sheet Analysis Earnings 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. F1 1 @ 2 Requirement F2 80 F3 General Journal > #3 3 $ 4 4 8 F4 % 50 F5 Prev 1 of 1 D T 6