Required information [The following information applies to the questions displayed below.] One Product Corporation (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 21,400 8,270 1,005 12,060 1,840 Equipment 39,400 Accumulated Depreciation 3,840 Accounts Payable 0. Sales Tax Payable 500 PICA Payable. 600 Withheld Income Taxes Payable 500 Salaries and Wages Payable 1,600 Unemployment Tax Payable 300 Deferred Revenue 4,500 Interest Payable 522 Notes Payable (long-term) 23,200 Common Stock 16,700 Additional Paid-In Capital, Common 19,783 Retained Earnings Treasury Stock 13,920 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 percent. OPC's January 1 inventory balance consists of 180 units at a total cost of $12,060. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. The $1,840 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 $13,500 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 1/04, to be paid on 1/10. e. A $1,010 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. 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. Collections from customers on account, totaling $17,771, 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 1/11 for $4,270. 1. The equipment purchased last year for $39,400 is sold on 1/15 for $39,800 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 $23,817, which includes interest accrued in December and an additional $95 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 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 $102,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $92,276 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. 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. Accrue OPC's corporate income taxes on 1/31, estimated to be $4,930. Requirement Statement of General Journal General Ledger Trial Balance Income Statement Stockholders Balance Sheet Equity Analysis General Journal tab - Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger and the adjusted Trial Balance' Tabs to see the effect of the transactions on the account balances. Trial Balance tab - Review the adjusted 'Trial Balance' as of January 31. Income Statement tab Prepare an income statement for the period ended January 31 in the "Income Statement' Tab. Statement of Stockholders' Equity tab - Prepare the statement of stockholders' equity for the month ended January 31. (2 Requirement Answer is not complete. General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity Analysis Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger and the adjusted Trial Balance' Tabs to see the effect of the transactions on the account balances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 Date January 01 General Journal Salaries and Wages Payable Cash Debit Credit 1,600 ( 1,600 6 2 January 02 Vehicles Cash 3 January 03 FICA Payable Withheld Income Taxes Payable Cash 000 30 13,500 13,500 600 500 1,100 4 January 04 Dividends 9,556 Dividends Payable 9,556 5 January 05 Allowance for Doubtful Accounts 1,035 Accounts Receivable 6 January 06 Accounts Receivable Sales Tax Payable Sales Revenue 27,825 1,575 26,250 7 January 06 8 January 07 Cost of Goods Sold Inventory Sales Tax Payable Cash 0 500 500 1 Required information Part 1 of 2 9 January 08 Cash Treasury Stock 5 10 January 09 Cash points Accounts Receivable 11 January 10 Dividends Payable Cash 12 January 11 Inventory Accounts Payable 13 January 15 Accumulated Depreciation-Equipment Depreciation Expense 00 00 2,400 2,400 18,021 18,021 00 0 O 3,920 3,920 00 0 0 00 14 January 15 Cash Accumulated Depreciation-Equipment 00 0 15 January 16 Salaries and Wages Expense Payroll Tax Expense FICA Payable Withheld Income Taxes Payable 0000 2,000 08 0 16 January 17 Notes Payable (long-term) 23,700 Interest Payable 0 Interest Expense 0 17 January 27 Accounts Receivable 4,770 Sales Tax Payable 4,770 18 January 27 Cost of Goods Sold 4,410 Inventory 1 Required information i 19 January 29 Deferred Revenue Part 1 of 2 Sales Revenue 20 January 29 Cost of Goods Sold 5 points 21 21 January 30 Cash Discount on Bonds Payable Bonds Payable 000 22 22 January 31 Depreciation Expense Accumulated Depreciation-Vehicles 23 January 311 Bad Debt Expense Allowance for Doubtful Accounts 24 January 31 Rent Expense Prepaid Rent 00 00 00 25 January 31 Salaries and Wages Expense Payroll Tax Expense Withheld Income Taxes Payable FICA Payable Unemployment Tax Payable Cash 26 January 31 Income Tax Expense Income Tax Payable 3,750 3,750 0x 96,800 10,200 107,000 400x 400 0 1,940 1,940 2,000 200 250 300 50 1,600 0000 4,930 4.930