Required Information ABC Corporation was formed at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were as follows: Cash $21. Bee 10. eee 200 10,5ee 1,200 25,880 2,400 Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Deferred Revenue Interest Payable Note Payable (long-term) Common Stock Additional Paid-In Capital, Common Retained Earnings 2,5ee 4,800 300 20, eee 12, 18, eee 8,300 The following Information is relevant to the first month of operations in the following year: ABC sells its Inventory at $200 per unit. ABC's January 1 Inventory balance consists of 140 units at a total cost of $10,500. ABC's policy is to use the FIFO method, recorded using a perpetual Inventory system. The $1,200 In Prepaid Rent on the December 31st Post-Closing Trial balance is a prepayment of January's rent. The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected life of five years. It is being depreciated using the straight-line method. Employee wages are $5,000 per month. Ignore payroll taxes and deductions. Deferred Revenue is for 20 units of Inventory that were ordered and paid for in advance by two customers in late December. One order of 15 units is to be filled in January, and the other will be filled in February. Notes Payable arises from a three-year, 6 percent bank loan received on October 1 last year. The par value on the common stock is $2 per share. January Transactions: 1. On 1/01, ABC pald employees' salaries and wages that were previously accrued on December 31. 2. A truck is purchased on 1/02 for $10,000 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value. 3. ABC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10. 4. A $105 customer account is written off as uncollectible on 1/05. 5.& 6. On 1/06, recorded sales of 100 units of Inventory on account. (5) Record the Sale. (6) Record the COGS. 7. Collections from customers on account, totaling $9,500, are recorded on 1/09. 8. On 1/10, ABC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $10 per share. 9. On 1/11, ABC purchases 75 units of Inventory on account for $4,875. All items were received. 10. & 11. The equipment purchased last year for $25,000 is sold on 1/15 for $20,000 cash. Record depreciation for the first half of January prior to recording the equipment disposal. (10) Record the depreciation. (11) Record the disposal 12. Payroll for January 1-15 is recorded and paid on 1/16. 13. Having sold the equipment, ABC pays off the note payable in full on 1/18. The amount paid is $20,360, which includes Interest accrued in December and an additional $60 Interest through January 18. 14. & 15. On 1/27, ABC records sales of 45 units of Inventory on account. (14) Record the Sale. (15) Record the COGS. 16. & 17. A portion of the advance order from December (15 units) is delivered on 1/29. (16) Record the Sale. (17) Record the COGS 18. On 1/30, ABC Issued bonds with a total face value of $90,000, stated Interest rate of 5 percent, annual compounding, and six-year maturity date. The bonds were issued at Face Value. Adjusting Entries: 19. On 1/31, ABC records units-of-production depreciation on the vehicle (truck), which was driven 2,100 miles this month. 20. On 1/31, ABC estimates that 2% of sales on account will be uncollectible during the year. Adjust the applicable accounts using the allowance method for accounts receivable. 21. On 1/31, adjust for January rent expired. 22. On 1/31, accrue payroll for January 16-31 which will be paid to employees on February 1. Requirement General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity General Journal tab - Prepare all January journal entries and adjusting entries for items (1)-(22). 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 Stockholders' Equity tab - Prepare the statement of stockholders' equity for the month ended January 31. Balance Sheet tab - Prepare a classified balance sheet as of January 31 in the Balance Sheet' Tab. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 ..... 22 On 1/01, ABC paid employees' salaries and wages that were previously accrued on December 31. 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 No. Debit Credit No. Date Dec 31 Balance 21,000 Date Dec 31 Accounts Receivable Debit Credit 1 Balance 10,000 Allowance for Doubtful Accounts Date / Debit Credit Dec 31 Inventory Debit No. No. Credit Balance 200 Date Dec 31 Balance 10,500 Equipment Prepaid Rent Debit Credit No. No. Debit Credit Date Dec 31 Balance 1,200 Date Dec 31 Balance 25,000 Accumulated Depreciation-Equipment Date Debit Credit Dec 31 Interest Payable Debit Credit No. Balance 2.400 Date Dec 31 Balance 300 Salaries and Wages Payable Deferred Revenue Debit Credit No. Debit Credit Balance Balan Date Dec 31 Balance 2.500 Date Dec 31 4,000 Common Stock Notes Payable (long-term) Debit Credit No. Debit Credit Balance Date Dec 31 Balance 20,000 Date Dec 31 12.000 Retained Earnings Debit Credit No. Additional Paid-In Capital, Common Stock Date Debit Credit Balance 18,000 No. Date Dec 31 Balance 8,300 Requirement Requirement General Journal General General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted - ABC Corporation Trial Balance January 30, 2020 Credit Debit 21,000 10,000 10.500 1,200 25,000 Account Title Cash - Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Equipment Interest Payable Salaries and Wages Payable Deferred Revenue Notes Payable (long-term) Common Stock Additional Paid-In Capital, Common Stock Retained Earnings 2.400 300 2.500 4,000 20,000 12,000 18.000 8,300 67,700 Total S 6 7,700 S Unadjusted ABC Corporation Income Statement For the Month Ended January 31 Loss on Disposal of PPE Income from Operations Unadjusted ABC Corporation Balance Sheet At January 31 10 Ho of