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 (30 units) Accounts Payable Notes Payable (long-term) Common Stock Retained Earnings $ 18,620 9,650 900* 2,800 4,350 1,300 15,000 5,000 4,520 * credit balance. The following information is relevant to the first month of operations in the following year: OTP will sell inventory at $145 per unit. OTP's January 1 inventory balance consists of 35 units at a total cost of $2,800. OTP's policy is to use the FIFO method, recorded using a perpetual inventory system. In December, OTP received a $4,350 payment for 30 units OTP is to deliver in January, this obligation was recorded in Deferred Revenue. Rent of $1,300 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 a. Included in OTP's January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a six- month note, at 12% 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 $500 insurance premium on 01/02, covering the month of January, the payment is recorded directly as an expense. c. OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms n/30. d. OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory. e. The 30 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 $1,350 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 40 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 ustomers recorded on 01/10. i. OTP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $2,200. j. Wrote off a $1,000 customer's account balance on 01/18. OTP uses the allowance method, not the direct write-off method.

One Trick Pony (OTP) incorporated and began operations near the end of the yeat, resulting in the following post-closing balances at December 3t. The following information is relevant to the first month of operations in the following year: - OTP will sell inventory at $145 per unit OTP's January 1 inventory balance consists of 35 units at a total cost of $2.800. OTP's policy is to use the FIFO method, recorded using a perpetual inventory system. - In December, OTP received a $4,350 payment for 30 units OTP is to deliver in January, this obligation was recorded in Deferred Revenue. Rent of $1300 was unpaid and recorded in Accounts Payable at December 31 - OTPs notes payable mature in three years, and accrue interest at a 10% annual rate. January Transactions a. Included in OIP's January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a sixmonth note, at 12% 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. OIP paid a $500 insurance premium on 01/02, covering the month of January, the payment is recorded directly as an expense. c OrP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms n/30. d. OTP pald a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory. e. The 30 units that OIP's customer paid for in advance in December are delivered to the customer on 0106 IOn 0V07, OTP recelved a purchase allowance of $1,350 on account, and then paid the amount necessary to settle the balance owed to the supplier for the v05 purchase of inventory (in c). g. Sales of 40 units of inventory occurring during the period of 01/0701/10 are recorded on 0170 The sales terms are n/30. h Collected payments on 01/14 from sales to customers recorded on 01/10 1 OIP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $2.200. 7. Wrote off a $1,000 customer's account balance on 01/18 OTP uses the allowance method, not the direct write-off method. k. Paid $2,600 on 01/19 for December and January rent. will expire soon, so it is charged directly to expense. LOTP recovered $400 cash on 01/26 from the customer whose account had previously been written off on 01/18 m. An unrecorded $400 utility bill for January artived on 01/27. It is due on 02/15 and will be paid then. n. Sales of 65 units of inventory during the period of 01/1001/28, with terms n/30, are recorded on 01/28. a. Of the sales recorded on 01/28, 15 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 $2,200 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 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment) 1. Accrue interest for January on the notes payable on 01/31. 5. Accrue interest for January on Jeff Letrotski's note on 01/31 (see od). 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 Batance tab - Review the adjusted 'Trial Batance' 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. One Trick Pony (OTP) incorporated and began operations near the end of the yeat, resulting in the following post-closing balances at December 3t. The following information is relevant to the first month of operations in the following year: - OTP will sell inventory at $145 per unit OTP's January 1 inventory balance consists of 35 units at a total cost of $2.800. OTP's policy is to use the FIFO method, recorded using a perpetual inventory system. - In December, OTP received a $4,350 payment for 30 units OTP is to deliver in January, this obligation was recorded in Deferred Revenue. Rent of $1300 was unpaid and recorded in Accounts Payable at December 31 - OTPs notes payable mature in three years, and accrue interest at a 10% annual rate. January Transactions a. Included in OIP's January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a sixmonth note, at 12% 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. OIP paid a $500 insurance premium on 01/02, covering the month of January, the payment is recorded directly as an expense. c OrP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms n/30. d. OTP pald a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory. e. The 30 units that OIP's customer paid for in advance in December are delivered to the customer on 0106 IOn 0V07, OTP recelved a purchase allowance of $1,350 on account, and then paid the amount necessary to settle the balance owed to the supplier for the v05 purchase of inventory (in c). g. Sales of 40 units of inventory occurring during the period of 01/0701/10 are recorded on 0170 The sales terms are n/30. h Collected payments on 01/14 from sales to customers recorded on 01/10 1 OIP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $2.200. 7. Wrote off a $1,000 customer's account balance on 01/18 OTP uses the allowance method, not the direct write-off method. k. Paid $2,600 on 01/19 for December and January rent. will expire soon, so it is charged directly to expense. LOTP recovered $400 cash on 01/26 from the customer whose account had previously been written off on 01/18 m. An unrecorded $400 utility bill for January artived on 01/27. It is due on 02/15 and will be paid then. n. Sales of 65 units of inventory during the period of 01/1001/28, with terms n/30, are recorded on 01/28. a. Of the sales recorded on 01/28, 15 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 $2,200 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 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment) 1. Accrue interest for January on the notes payable on 01/31. 5. Accrue interest for January on Jeff Letrotski's note on 01/31 (see od). 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 Batance tab - Review the adjusted 'Trial Batance' 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