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: $19,780 8,350 1,065 14,586 1,960 46,680 4,560 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 19,745 Retained Earnings Treasury Stock 500 600 500 1,600 300 4, 500 536 23,800 18, 500 18,740 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 $14,580. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system . The $1,960 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. 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 $10.500 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no rsidual value c. Payroll withholdings and employer contributions for December are remitted on 1/03 d OPC delares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10 e A $1,040 customer account is written off as uncollectible on 1/05 1 On 106, recorded sales of 175 units of inventory on account Sales tax is charged but not yet collected or remited to the state g Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07 h. On 1/08, OPC issued 300 shares of treasury stock for $2.400 i Collections from customers on account, totaling $18,071, are recorded on 1/09 4 On 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 1/11 for $4,620 1 The equipment purchased last year for $46,600 is sold on 115 for $48.200 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 1/17. The amount paid is $24,434, which includes interest accrued in December and an additional $98 interest through January 17 o On 1/27, 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. 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 r 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 Journal entry worksheet On 1/01, OPC 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 Reauirement Journal entry worksheet K1 2 3 4 5 6 78 26 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 will have no residual value. Record the transaction Note: Enter debits before credits. es Date General Journal Debit Credit Jan 02 Record entry Clear entry View general journal Journal entry worksheet 2 6 7 Payroll withholdings and employer contributions for December are remitted on 1/03. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 03 Record entry Clear entry View general journal KRequirement General Ledger > Journal entry worksheet 2 4 6 7 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 View general journal Record entry Clear entry K Requirement General Ledger > Journal entry worksheet 2 6 7 826 A $1,040 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 Record entry Clear entry View general journal KRequirement General Ledger > Journal entry worksheet 3 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. Record the sale transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 06 Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 826 l.yb. 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. Record the cost of goods sold Note: Enter debits before credits. Date General Journal Debit Credit Jan 06 Record entry Clear entry View general journal Requirement General Ledger > Journal entry worksheet 7 Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07, Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 07 Record entry Clear entry View general journal Requirement General Ledger> Journal entry worksheet 6 7 8 9 .26 On 1/08, OPC issued 300 shares of treasury stock for $2,400. Record the transaction Note: Enter debits before credits. General Journal Debit Credit Date Jan 08 Record entry Clear entry View general journal Requirement General Ledger> Journal entry worksheet 10 26 Collections from customers on account, totaling $18,071, are recorded on 1/09. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 09 Record entry Clear entry View general journal Journal entry worksheet 9 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. es Date General Journal Debit Credit Jan 10 Record entry Clear entry View general journal Requirement General Ledger > Journal entry worksheet 9 10 1112 8 12.26 OPC purchases on account and receives 70 units of inventory on 1/11 for $4,620. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 11 Record entry Clear entry View general journal Requirement General Ledger> Journal entry worksheet K1 89 1011 12 13 26 The equipment purchased last year for $46,600 is sold on 1/15 for $48,200 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 K1 10 11 12 13 14 15. 26 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 Record entry Clear entry View general journal View transaction list Journal entry worksheet K ..11 12 13 14 1516 Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $24,434, which includes interest accrued in December and an additional $198 interest through January 17. Record the transaction. Note: Enter debits before credits. es Date General Journal Debit Credit Jan 17 Record entry Clear entry View general journal Journal entry worksheet 1 12 13 14 15 16|17| 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 sale transaction. Note: Enter debits before credits. :S Date General Journal Debit Credit Jan 27 Record entry Clear entry View general journal Journal entry worksheet Journal entry worksheet 1 15 16 17 18 19|20| 26 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 United States governmental organization that is exempt from sales tax. Record the cost of goods sold. Note: Enter debits before credits. es Date General Journal Debit Credit Jan 29 Clear entry View general journal Record entry Requirement General Ledger > Journal entry worksheet K1 18 19 20 21 22 23 .. 26 OPC estimates that 296 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 Journal Debit Credit Jan 31 Record entry Clear entry View general journal Requirement General Ledger ) Journal entry worksheet K1 19 202122 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 View general journal Record entry Clear entry View transaction list Journal entry worksheet K1 19 20 21 22 23 24 25 26 Accrue OPC's corporate income taxes on 1/31, estimated to be $5,140. Record the Note: Enter debits before credits. General Journal Debit Credit Jan 31 Clear entry View general journal Record entry Requirement General Ledger )