Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Required information C 1 1 - 2 ( Static ) Recording Daily and Adjusting Entries, and Preparing and Evaluating Financial Statements ( Part A: Chapters
Required information CStatic Recording Daily and Adjusting Entries, and Preparing and Evaluating Financial Statements Part A: Chapters ; Part B: Ch Suppl. B; Part C: App. CLO Skip to question The following information applies to the questions displayed below. One Product Corporation OPC incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December at the end of its first year of operations, were: Cash $ Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Sales Tax Payable FICA Payable Withheld Income Taxes Payable Salaries and Wages Payable Unemployment Tax Payable Deferred Revenue Interest Payable Notes Payable longterm Common Stock Additional PaidIn Capital, Common Retained Earnings Treasury Stock The following information is relevant to the first month of operations in the following year: OPC sells its inventory at $ per unit, plus sales tax of percent. OPCs January inventory balance consists of units at a total cost of $ OPCs policy is to use the FIFO method, recorded using a perpetual inventory system. The $ in Prepaid Rent relates to a payment made in December for January rent this year. The equipment was purchased on July of last year. It has a residual value of $ and an expected life of five years. It is being depreciated using the straightline method. Employee wages are $ per month. Employees are paid on the th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay period include $ of income taxes and $ of FICA taxes. These withholdings and the employers matching contribution are paid monthly on the second day of the following month. In addition, unemployment taxes of $ are accrued each pay period, and will be paid on March Deferred Revenue is for units ordered and paid for in advance by two customers in late December. One order of units is to be filled in January, and the other will be filled in February. Notes Payable arises from a threeyear, percent bank loan received on October last year. The par value on the common stock is $ per share. Treasury Stock arises from the reacquisition of shares at a cost of $ per share. January Transactions On OPC paid employees salaries and wages that were previously accrued on December A truck is purchased on for $ cash. It is estimated this vehicle will be used for miles, after which it will have no residual value. Payroll withholdings and employer contributions for December are remitted on OPC declares a $ cash dividend on each share of common stock on to be paid on A $ customer account is written off as uncollectible on On recorded sales of units of inventory on account. Sales tax is charged but not yet collected or remitted to the state. Sales taxes of $ that had been collected and recorded in December are paid to the state on On OPC issued shares of treasury stock for $ Collections from customers on account, totaling $ are recorded on On OPC distributes the $ cash dividend declared on January The companys stock price is currently $ per share. OPC purchases on account and receives units of inventory on for $ The equipment purchased last year for $ is sold on for $ cash. Record depreciation for the first half of January prior to recording the equipment disposal. Payroll for January is recorded and paid on Be sure to accrue unemployment taxes and the employers matching share of FICA taxes. Having sold the equipment, OPC pays off the note payable in full on The amount paid is $ which includes interest accrued in December and an additional $ interest through January On OPC records sales of units of inventory on account. Sales tax is charged but not yet collected or remitted. A portion of the advance order from December units is delivered on No sales tax is collected on this transaction because the customer is a US governmental organization that is exempt from sales tax. To obtain funds for purchasing new equipment, OPC issued bonds on with a total face value of $ stated interest rate of percent, annual compounding, and sixyear maturity date. OPC received $ from the bond issuance, which implies a market interest rate of percent. On OPC records unitsofproduction depreciation on the vehicle truck which was driven miles this month. OPC estimates that of the
Required information
CStatic Recording Daily and Adjusting Entries, and Preparing and Evaluating Financial Statements Part A: Chapters ; Part B: Ch Suppl. B; Part C: App. CLO
Skip to question
The following information applies to the questions displayed below.
One Product Corporation OPC incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December at the end of its first year of operations, were:
Cash $
Accounts Receivable
Allowance for Doubtful Accounts
Inventory
Prepaid Rent
Equipment
Accumulated Depreciation
Accounts Payable
Sales Tax Payable
FICA Payable
Withheld Income Taxes Payable
Salaries and Wages Payable
Unemployment Tax Payable
Deferred Revenue
Interest Payable
Notes Payable longterm
Common Stock
Additional PaidIn Capital, Common
Retained Earnings
Treasury Stock
The following information is relevant to the first month of operations in the following year:
OPC sells its inventory at $ per unit, plus sales tax of percent. OPCs January inventory balance consists of units at a total cost of $ OPCs policy is to use the FIFO method, recorded using a perpetual inventory system.
The $ in Prepaid Rent relates to a payment made in December for January rent this year.
The equipment was purchased on July of last year. It has a residual value of $ and an expected life of five years. It is being depreciated using the straightline method.
Employee wages are $ per month. Employees are paid on the th for the first half of the month and on the first day of the following month for the second half of each month. Withholdings each pay period include $ of income taxes and $ of FICA taxes. These withholdings and the employers matching contribution are paid monthly on the second day of the following month. In addition, unemployment taxes of $ are accrued each pay period, and will be paid on March
Deferred Revenue is for units ordered and paid for in advance by two customers in late December. One order of units is to be filled in January, and the other will be filled in February.
Notes Payable arises from a threeyear, percent bank loan received on October last year.
The par value on the common stock is $ per share.
Treasury Stock arises from the reacquisition of shares at a cost of $ per share.
January Transactions
On OPC paid employees salaries and wages that were previously accrued on December
A truck is purchased on for $ cash. It is estimated this vehicle will be used for miles, after which it will have no residual value.
Payroll withholdings and employer contributions for December are remitted on
OPC declares a $ cash dividend on each share of common stock on to be paid on
A $ customer account is written off as uncollectible on
On recorded sales of units of inventory on account. Sales tax is charged but not yet collected or remitted to the state.
Sales taxes of $ that had been collected and recorded in December are paid to the state on
On OPC issued shares of treasury stock for $
Collections from customers on account, totaling $ are recorded on
On OPC distributes the $ cash dividend declared on January The companys stock price is currently $ per share.
OPC purchases on account and receives units of inventory on for $
The equipment purchased last year for $ is sold on for $ cash. Record depreciation for the first half of January prior to recording the equipment disposal.
Payroll for January is recorded and paid on Be sure to accrue unemployment taxes and the employers matching share of FICA taxes.
Having sold the equipment, OPC pays off the note payable in full on The amount paid is $ which includes interest accrued in December and an additional $ interest through January
On OPC records sales of units of inventory on account. Sales tax is charged but not yet collected or remitted.
A portion of the advance order from December units is delivered on No sales tax is collected on this transaction because the customer is a US governmental organization that is exempt from sales tax.
To obtain funds for purchasing new equipment, OPC issued bonds on with a total face value of $ stated interest rate of percent, annual compounding, and sixyear maturity date. OPC received $ from the bond issuance, which implies a market interest rate of percent.
On OPC records unitsofproduction depreciation on the vehicle truck which was driven miles this month.
OPC estimates that of the
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started