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( SEE IMAGES FOR FULL INFORMATION ) General Journal tab - Prepare all January journal entries and adjusting entries for items ( a ) to

(SEE IMAGES FOR FULL INFORMATION) General Journal tab - Prepare all January journal entries and adjusting entries for items (a) to (s). 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 J One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at January Transactions
a. Included in OTP's January 1 Accounts Receivable balance is a $2,400 balance due from Jeff Letrotski. Jeff is having cash flow
problems and cannot pay the $2,400 balance at this time. On 01/01, OTP arranges with Jeff to convert the $2,400 balance to a six-
month note, at 10% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and
payable to OTP on July 1 of this year.
b. OTP paid a $560 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense.
c. OTP purchased an additional 200 units of inventory from a supplier on account on 0105 at a total cost of $8,000, with terms n30.
d. OTP paid a courier $400 cash on 0105 for same-day delivery of the 200 units of inventory.
e. The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06.
f. On 01/07, OTP received a purchase allowance of $1,200 on account, and then paid the amount necessary to settle the balance
owed to the supplier for the 105 purchase of inventory (in c).
g. Sales of 60 units of inventory occurring during the period of 01/07-01/10 are recorded on 0110. The sales terms are n30.
h. Collected payments on 01/14 from sales to customers recorded on 01/10.
i. OTP paid the first 2 weeks' wages to the employees on 0116. The total paid is $2,880.
j. Wrote off a $950 customer's account balance on 01/18. OTP uses the allowance method, not the direct write-off method.
k. Paid $2,800 on 0119 for December and January rent. See the earlier bullets regarding the December portion. The January portion
will expire soon, so it is charged directly to expense.
OTP recovered $430 cash on 0126 from the customer whose account had previously been written off on 01/18.
m. An unrecorded $300 utility bill for January arrived on 01/27. It is due on 0215 and will be paid then.
n. Sales of 70 units of inventory during the period of 0110-0128, with terms n30, are recorded on 01/28.
o. Of the sales recorded on 0128,10 units are returned to OTP on 0130. The inventory is not damaged and can be resold. OTP
charges sales returns to a contra-revenue account.
p. On 01/31, OTP records the $2,880 employee salary that is owed but will be paid February 1.
q. OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP's accounts receivable fall into a
single aging category, for which 10% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to
determining the appropriate adjustment.)
r. Accrue interest for January on the notes payable on 01/31.
s. Accrue interest for January on Jeff Letrotski's note on 01/31(see a).
December 31:
The following information is relevant to the first month of operations in the following year:
OTP will sell inventory at $140 per unit. OTP's January 1 inventory balance consists of 50 units at a total cost of $2,000. OTP's policy
is to use the FIFO method, recorded using a perpetual inventory system.
In December, OTP received a $5,600 payment for 40 units OTP is to deliver in January; this obligation was recorded in Deferred
Revenue. Rent of $1,400 was unpaid and recorded in Accounts Payable at December 31 For the month ended January 31,
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