Required information One Product Corp. (OPC) incorporated 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: 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 Note Payable (long-term) Common Stock $19,780 8,350 1,065 14,580 1,960 46,600 4,560 500 600 500 1,600 300 4, 580 536 23,800 18,500 Additional Paid-In Capital, Common 19,745 18,740 4,000 Retained Earnings Treasury Stock January Transactions b. A truck is purchased on 1/02 for $10,500 cash. It is estimated this vehicle will be used for 50,000 miles, after which it d. OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10 f On 1/06, recorded sales of 175 units of inventory on account. Sales tax is charged but not yet collected or remitted to g Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07 On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31 will have no residual value Payroll withholdings and employer contributions for December are remitted on 1/03. A $1,040 customer account is written off as uncollectible on 1/05 the state h. On 1/08, OPC issued 300 shares of treasury stock for $2,400 Collections from customers on account, totaling $18,071, are recorded on 1/09 On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share Z The equipment purchased last year for $46,600 is sold on 1/15 for $48,200 cash. Record depreciation for the first half m. Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's n. Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $24.434, which includes o. On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted OPC purchases on account and receives 70 units of inventory on 1/11 for $4,620 of January prior to recording the equipment disposal. matching share of FICA taxes interest accrued in December and an additional $98 interest through January 17 p. A portion of the advance order from December (25 units) is delivered on 1/29. No sales tax is collected on this transaction because the customer is a U.S. governmental organization that is exempt from sales tax q. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $108,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC recelved $97,704 from the bond issuance, which implies a market interest rate of 7 percent On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 2,000 miles this month. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method. t On 1/31, adjust for January rent expired u. Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes v Accrue OPC's corporate income taxes on 1/31, estimated to be $5,140 Unadjusted ONE PRODUCT CORP. Trial Balance January 30, 2019 Account Title Debit Credit Cash Accounts Recelvable Allowance for Doubtful Accounts 19,780 8,350 1,065 14,580 1,960 46,600 Prepaid Rent Equipment 4,560 Interest Payable Salaries and Wages Payable Withheld Income Taxes Payable FICA Payable Unemployment Tax Payable Sales Tax Payable Deferred Revenue Notes Payable (long-term) Common Stock Additional Paid-In Capital, Common Stock Retained Eanings Treasury Stock 1,600 4,500 23,800 18,500 9,745 18,740 4,000 95,270 $ Total 94,946 General Ledger Income Statement Required information One Product Corp. (OPC) incorporated 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: 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 Note Payable (long-term) Common Stock $19,780 8,350 1,065 14,580 1,960 46,600 4,560 500 600 500 1,600 300 4, 580 536 23,800 18,500 Additional Paid-In Capital, Common 19,745 18,740 4,000 Retained Earnings Treasury Stock January Transactions b. A truck is purchased on 1/02 for $10,500 cash. It is estimated this vehicle will be used for 50,000 miles, after which it d. OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10 f On 1/06, recorded sales of 175 units of inventory on account. Sales tax is charged but not yet collected or remitted to g Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07 On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31 will have no residual value Payroll withholdings and employer contributions for December are remitted on 1/03. A $1,040 customer account is written off as uncollectible on 1/05 the state h. On 1/08, OPC issued 300 shares of treasury stock for $2,400 Collections from customers on account, totaling $18,071, are recorded on 1/09 On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share Z The equipment purchased last year for $46,600 is sold on 1/15 for $48,200 cash. Record depreciation for the first half m. Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's n. Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $24.434, which includes o. On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted OPC purchases on account and receives 70 units of inventory on 1/11 for $4,620 of January prior to recording the equipment disposal. matching share of FICA taxes interest accrued in December and an additional $98 interest through January 17 p. A portion of the advance order from December (25 units) is delivered on 1/29. No sales tax is collected on this transaction because the customer is a U.S. governmental organization that is exempt from sales tax q. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $108,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC recelved $97,704 from the bond issuance, which implies a market interest rate of 7 percent On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 2,000 miles this month. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method. t On 1/31, adjust for January rent expired u. Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes v Accrue OPC's corporate income taxes on 1/31, estimated to be $5,140 Unadjusted ONE PRODUCT CORP. Trial Balance January 30, 2019 Account Title Debit Credit Cash Accounts Recelvable Allowance for Doubtful Accounts 19,780 8,350 1,065 14,580 1,960 46,600 Prepaid Rent Equipment 4,560 Interest Payable Salaries and Wages Payable Withheld Income Taxes Payable FICA Payable Unemployment Tax Payable Sales Tax Payable Deferred Revenue Notes Payable (long-term) Common Stock Additional Paid-In Capital, Common Stock Retained Eanings Treasury Stock 1,600 4,500 23,800 18,500 9,745 18,740 4,000 95,270 $ Total 94,946 General Ledger Income Statement