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: $19.60e 8,290 35. 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 588 1,600 4. See 515 22,90e 15.se 19.54 11,51e 4. 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 $13,320. OPC's policy is to use the FIFO method. recorded using a perpetual Inventory system The $1.780 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 income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are paid o units ordered and will be filled in Februaryn October 1 lasty 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 $12,000 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 1/04. to be paid on 1/10. e. A $995 customer account is written off as uncollectible on 1/05. 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. 9. 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. Collections from customers on account, totaling $16.740. 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 R. OPC purchases on account and receives 70 units of inventory on 1/11 for $3.990. The equipment purchased last year for $35,800 is sold on 1/15 for $35.600 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 employers matching share of FICA taxes n. Having sold the equipment, OPC pays of the note payable in full on 1/17. The amount paid is $23.509, which includes interest accrued in December and an additional $94 interest through January 17 BLON 12 OP records sales of 30 units of inventory on account Sales toxischarged but not yet collected at remitted A portion of the advance order from December (25 units i dellvered on 29. No sales tax collected on the transaction because the customer is a U.5. governmental organization that is exempt from sales to To in un for purchasing new equipment, Op u ed bonds on 130 with a total face value of $99.000 stated nterest rate or percent and compounding, and sxva maturity date OPC received $89.562 from the bond suance, which imples a market Interest rate of 7 percent con 131 Opd records units of production depreciation on the vehicle truck, which was driven 2.000 mies this month NA On 131. 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. 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 $4.940. Requirement General Journal General Tedaer Tral Balance Income Statement Statement of Stockholders Balance Sheet Equity Analysis Use the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted ONE PRODUCT CORP Balance Sheet At January 31 Requirement General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity Analysis W OPCs total payroll cost for January? Total Payroll Cost w 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 Stook on Jan. 8?
