Required information [The following information applica to the questions displayed below] One Product Corporation (OPC) incorporated at the beginning of last year. The balances on its peat-closing trial balance prepared on December 31, at the end of its first year of operations, were: cash Accounts Receivable Allance for Doubtful Accounts Laventory Accumulated Depreciation Accounts Payable Sales Tax Payable FICA Payable withheld Income Taxes Payable salaries and ages Payable ployment Tax Payable Deferred Revenue Interest Payable Rates Payable (lg) canean Stock Additional Paid-In Capital, Retained sarnings Treasury Stock see The following information is relevant to the first month of operations in the following year. OPC sell its inventory at $150 per unit, plus sales tax of 6 percent. OPC's January 1 inventory balance consists of 180 units at a total cost of $12,240. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. The $1,860 in Propoid 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 accond half of cach month. Withholdinga cach pay period include $250 of income taxes and $150 of FICA taxes. These withholdings and the employer's matching contribution are poid monthly on the second day of the following month. In addition, unemployment taxes of $80 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 orice from a three-year 9 percent bank loan received on October 1 leat year. The per value on the common stock is $2 per share. Treasury Stock risca from the reacquisition of 500 shares at a cost of $8 per share. January Transections On 1/01, OPC paid employees' lorica and wages that were previously accrued on December 31. b. A truck is purchased on 102 for $8,000 cash. It is catimated this vehicle will be used for 50,000 miles, after which it will have no residual value. c. Payroll withholdinga and employer contributions for December are remitted on 1/03. d. OPC declares = $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10. A $1,015 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 9. Solof $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 $17,821, are recorded on 1/00. On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per k. OPC purchases on account and receives 70 units of inventory on 1/11 for $4,200. P The equipment purchased last year for $40,600 is sold on 1/15 for $41,200 cash. Record depreciation for the first half of January prior to recording the equipment disposal Payroll for January 1-15 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the employer's of FICA Having sold the equipment, OPC pays off the note payable in full on 117. The amount paid is $23,920, which includes interest accrued in December and an additional $96 interest through January 17. On 1/27, OPC recorda als of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted. A portion of the advance order from December (25 units) is delivered on 1/20. No ale tax is collected on this transaction because the cause the customer is a US governmental organization that is exempt from sales tax. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $103,000, stated interest rate of 5: percent, annual compounding, and six-year maturity date. OPC received $23,181 from the band ance 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 catima that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts en 131, using the allowance method. On 1/31, for January rent expired. Accrue January 31 payroll on 1/31, which will be payable on February 1. Be sure to accrue unemployment taxes and the Employer matching share of FICA ta Accrue OPC's corporate income tax on 1/31, cimated to be $5,000.