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: $19,620 8,290 965 13, 180 1,760 34,600 3,360 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 Additional Paid-In Capital, Common Retained Earnings Treasury Stock 500 600 500 1,600 300 4,500 513 22,800 15,500 19,592 10,720 4,000 The following information is relevant to the first month of operations in the following year OPC sells its inventory at $150 per unit, plus sales tax of 6%. OPC's January 1 inventory balance consists of 180 units at a total cost of $13,180. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. The $1,760 in Prepaid Rent relates to a payment made in December for January rent this year. The equipment was purchased on July 1 of last year. It has a residual value of $1,000 and an expected life of five Note Payable long-term) Common Stock Additional Paid-In Capital, Common Retained Earnings Treasury Stock 22,880 15,500 19,592 10,720 4,000 The following information is relevant to the first month of operations in the following year. OPC sells its inventory at $150 per unit, plus sales tax of 6%. OPC's January 1 inventory balance consists of 180 units at a total cost of $13,180. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. The $1,760 in Prepaid Rent relates to a payment made in December for January rent this year. 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 $4,000 per month. Employees are paid on the 16th 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 $250 of income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are paid monthly on the second day of the following month. In addition, unemployment taxes of $50 are accrued each pay period, and will be paid on March 31. Deferred Revenue is for 30 units ordered and paid for in advance by two customers in late December. One order of 25 units is to be filled in January, and the other will be filled in February Notes Payable arises from a three-year, 9 percent bank loan received on October 1 last year. The par value on the common stock is $2 per share. Treasury Stock arises from the reacquisition of 500 shares at a cost of $8 per share. January Transactions a. On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31. b. A truck is purchased on 1/02 for $11,500 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value. c. Payroll withholdings and employer contributions for December are remitted on 1/03. nor Harlare en orach hand nach whare femman tarinn Athenaidan 10 Prev 1 of 2 !!! Next > January Transactions a. On 101, OPC paid employees' salaries and wages that were previously accrued on December 31. b. A truck is purchased on VO2 for $11,500 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value. c. Payroll withholdings and employer contributions for December are remitted on 1/03. d. OPC declares a $0.50 cash dividend on each share of common stock on 104, to be paid on 110. e. A $990 customer account is written off as uncollectible on 105. On 1/06, recorded sales of 175 units of inventory on account Sales tax is charged but not yet collected or remitted to the state. g. Sales taxes of $500 that had been collected and recorded in December are paid to the state on 107. h. On 108, OPC issued 300 shares of treasury stock for $2,400. 2 Collection from customers on account, totaling $15,812, are recorded on 1/09. J. On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share. K OPC purchases on account and receives 70 units of inventory on 111 for $4,200. . The equipment purchased last year for $34,600 is sold on 1/15 for $34,200 cash. Record depreciation for the first half of January prior to recording the equipment disposal. m. Payroll for January 1-15 is recorded and paid on 116. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. n. Having sold the equipment, OPC pays off the note payable in full on 117. The amount paid is $23,407, which includes interest accrued in December and an additional $94 interest through January 17, o. On 127, OPC records sales of 30 units of inventory on account Sales tax is charged but not yet collected or remitted. 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 US governmental organization that is exempt from sales tax. 9. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $98,000, stated Interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $88,658 from the bond Issuance, which implies a market interest rate of 7 percent. 1 On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 2,000 miles this month. S. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method. On 1/31 adirist for lantarv rent eynired Prev 1 of 2 Next > the state. g. Sales taxes of $500 that had been collected and recorded in December are paid to the state on 107. h. On 108, OPC issued 300 shares of treasury stock for $2,400. 2 Collections from customers on account, totaling $15,812, are recorded on 1/09. 1. On 110, OPC distributes the $0,50 cash dividend declared on January 4. The company's stock price is currently $5 per share. K. OPC purchases on account and receives 70 units of inventory on 1/11 for $4,200. 2. The equipment purchased last year for $34,600 is sold on 1/15 for $34,200 cash. Record depreciation for the first half of January prior to recording the equipment disposal. m. Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. n. Having sold the equipment, OPC pays off the note payable in full on 1717. The amount paid is $23,407, which includes interest accrued in December and an additional $94 interest through January 17. o. On 127, OPC records sales of 30 units of inventory on account Sales tax is charged but not yet collected or remitted. 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. 4. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $98,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date, OPC received $88,658 from the bond issuance, which implies a market interest rate of 7 percent. 1. On 131, OPC records unlts-of-production depreciation on the vehicle (truck), which was driven 2,000 miles this month. S. 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. Acque January 31 payroll on 131, which will be payable on February 1. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. Accrue OPC's corporate income taxes on 131, estimated to be $4.650. Requirement General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity Analysis Prev 1 of 2 Next > Prepare an ane journal endles and adjusting entries for tems (a-(w). Review the General Ledger Tabs to see the effect of the transactions on the account balances. (If no entry is required for a transact entry required" in the first account fleld.) View transaction list Journal entry worksheet Payroll withholdings and employer contributions for December are remitted on 1/03. Record the transaction. Note. Enter debits before credits. Date General Journal Credit Debit 600 Jan 03 500 View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 26 OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 04 Prev 1 of 2 H Next entry required in the first account Flela. View transaction list Journal entry worksheet A $990 customer account is written off as uncollectible on 1/05. Record the transaction. Note. Enter debits before credits. Date General Journal Debit Credit Jan 05 Prev 1 of 2 Next > View transaction list Journal entry worksheet View transaction list Journal entry worksheet 6 7 8 9 E. 10 11 26 On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 10 Prev 1 of 2 Next > View transaction list Journal entry worksheet 1 7 9 10 11 12 26 . OPC purchases on account and receives 70 units of inventory on 1/11 for $4,200. Record the transaction. Note Enter debits before credits. Date General Journal Debit Credit Jan 11 Prev 1 of 2 Next > Journal entry worksheet 1 8 9 10 11 12 13 26 The equipment purchased last year for $34,600 is sold on 1/15 for $34,200 cash. Record depreciation for the first half of January. Note: Enter debits before credits. Date General Journal Debit Credit Jan 15 Record entry Clear entry View general journal Journal entry worksheet (1 9 10 11 12 13 14 26 The equipment purchased last year for $34,600 is sold on 1/15 for $34,200 cash. Record the equipment disposal. Note. Enter debits before credits. Date General Journal Debit Credit Jan 15 Record entry Clear entry View general journal Prev 1 of 2 Next > Journal entry worksheet 1 10 11 12 13 14 15 26 HOR Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 16 Prev 1 of 2 Next View transaction list Journal entry worksheet 11 12 13 14 15 16 26 CE Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $23,407, which includes Interest accrued in December and an additional $94 Interest through January 17. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 17 Record entry Clear entry View general journal Prev 1 of 2 Next > View transaction list Journal entry worksheet View transaction list Journal entry worksheet 1 13 14 CIRE 15 16 17 18 26 On 1/27, OPC records sales of 30 units of Inventory on account. Sales tax is charged but not yet collected or remitted. Record the cost of goods sold. Notes Enter debits before credits. Date General Journal Debit Credit Jan 27 Record entry Clear entry View general journal Prev 1 of 2 Next > View transaction list Journal entry worksheet Journal entry worksheet 1 18 19 20 21 22 23 26 OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method. Record the transaction. Note: Enter debits before credits. Date General Joumal Debit Credit Jan 31 Record entry Clear entry View general journal Prev 1 of 2 Next > VEUW ction list Journal entry worksheet 19 20 21 22 23 24 26 On 1/31, adjust for January rent expired. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 31 Record entry Clear entry View general journal Prev 1 of 2 Next > Journal entry worksheet 19 20 21 22 23 24 25 26 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. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 31 Prev 1 of 2 Next Journal entry worksheet 1 19 20 21 22 23 24 25 26 Accrue OPC's corporate Income taxes on 1/31, estimated to be $4,650. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 31 Record entry Clear entry View general journal Prey 1 of 2 Next Required information then populate the balances in those accounts from the trial balance Unadjusted ONE PRODUCT CORP. Income Statement For the Month Ended January 31 $ 0 $ 0 $ 0 O 0 0 0 0 Loss(Gain) on Disposal Income from Operations $ 0 0 Income before Income Tax Expense 0 $ 0 Trial Balance Stateme Unadjusted ONE PRODUCT CORP. Balance Sheet At January 31 $ 0 0 Olo 0 0 0 $ 0 0 0 0 0 0 Requirement General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Equity What was OPC's total payroll cost for January? Total Payroll Cost Will the carrying value of the bond increase or decrease after recording interest in February? What is the interest payment OPC will need to pay annually on the bond? Interest Payment What was the gain or loss was recognized on the issuance of Treasury Stock on Jan. 8?