[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: 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 $12,600. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. - The $1,740 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 depreclated using the straight-line method. - Employee wages are $4,000 per month. Employees are paid on the 16 th for the first half of the month and on the 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 $12,600. OPC's policy is to use the FIFO method, recorded using a perpetual inventory system. - The $1,740 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 16 th 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 recelved 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 $11,000 cash. It is estimated this vehicle will be used for 50,000 milles, after which it will have no resldual 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. 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 $11,000 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 $985 customer account is written off as uncollectible on 1/05. f. 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. 1. Collections from customers on account, totaling $14,886, are recorded on 1/09. 1. 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 recelves 70 units of inventory on 1/11 for $4,480. 1. The equipment purchased last year for $33,400 is sold on 1/15 for $32,800 cash. Record depreciation for the first half of January prlor to recording the equipment disposal. m. Payroll for January 115 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 $23,304, which includes interest accrued in December and an additional $93 interest through January 17. 0. 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 dellvered 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 $97,000, stated 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. 1. Collections from customers on account, totaling $14,886, are recorded on 1/09. 1. 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 111 for $4,480. 1. The equipment purchased last year for $33,400 is sold on 1/15 for $32,800 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 $23,304, which includes interest accrued in December and an additional \$93 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 $97,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC recelved $87.753 from the bond issuance, which implies a market interest rate of 7 percent. 1. 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 recelvable 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 $4,290. General Journal tab - Prepare all January joumal entries and adjusting entries for items (a) -(v). Review the 'General Ledger' and the adfusted '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. Balance Sheet tab - Prepare a classifled balance sheet as of January 31 in the 'Balance Sheet' Tab. Analysis tab - Using the information from the requirements above, complete the 'Analysis' 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. (If no entry is required for a transaction/event, select "No journal ontry required" in the first account field.) Journal entry worksheet On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31. Record the transaction. Note: inter debits betore credits. 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 joumal entry required" in the first account field.) Journal entry worksheet 4 5 6 7 8 26 A truck is purchased on 1/02 for $11,000 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. Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adjusted 'Triaf 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 Tans to see the eifect of the transactions entry required" in the first account field.) Journal entry worksheet 56 7 8 26 Payroll withholdings and employer contributions for December are remitted on 1/03. Record the transaction. Nute: Enter debits bofore credits. 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.) Journal entry worksheet 12 6 7 8 26 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. Prepare all lanuary 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 requifed for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 6 7 8 26 A $985 customer account is written off as uncollectible on 1/05. Record the transaction. Noke; Enter debits before credits. Prepore all January journal entrius 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 transactionvevent, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 3 4 7 B 26 > 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 betore credits. Prepare all January jourrial entries and adjusting entries for items (o)(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.) Journal entry worksheet 1 2 3 4 5 6 8 26 On 1/06, recorded sabes 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: Nob: Enter debts before credrs. Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adjusted 'Trial Balance' Jabs to see the effect of the transactions on the account balances. (II no entry is required for a transoctionvevent, select "No journal entry required" in the first account field, ) Journal entry worksheet Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07. Record the transaction. Nute: Erkor debits before aedits. 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.) Journal entry worksheet On 1/08, OPC issued 300 shares of treasury stock for $2,400. Record the transaction. Note: Enter idebits before credits. Prepare all January journal entries and adjusting entries for items (a)-( (v). Review the 'General Ledger' and the adjusted 'Trial Balance' fabs 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 fleld.) Journal entry worksheet 1 6 7 (8) 9 26 Collections from customers on account, totaling $14,886, are recorded on 1/09. Record the transaction. Note: Enter detits before creoris. Prepare all January fournal 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 foumal entry required" in the first account field.) Journal entry worksheet \( \begin{tabular}{ll|l|l|l|l|l} 1 \) & 6 & 7 & (8) & 9 & 26 & \end{tabular} 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: Griter debcs betpre credits. 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 fiefd.) Journal entry worksheet 1 7 9 11 26 OPC purchases on account and recelves 70 units of inventory on 1/11 for $4,480. Record the transaction. Note: Enter debirs before credics. Prepare all January journal entries and adjusting entries for items (a)-(v), Review the 'General Ledger' and the adjusted 'Trial Balance' labs to see the effect of the transactions on the account balances. (II no entry is required for a transoction/event, select "No lournal entry required" in the first account field.) Journal entry worksheet 1 8 9 10 11 12 26 The equipment purchased last year for $33,400 is sold on 1/15 for $32,800 cash, Record depreciation for the first half of January. Note: Enter debits before credits. Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adjusted 'Trial Balance' labs to see the effect of the transactions on the account balances. (If no entry is required for a transaction/event, select "No foumal entry required" in the first account field.) Journal entry worksheet 1 9 10 11 12 13 26 The equipment purchased last vear for $33,400 is sold on 1/15 for $32,800 cash. Record the equipment disposal. Note: Enter debits before creats. Prepare all lanuary 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. (It no entry is requitred for a transaction/event, select "No jocimal entry required" in the first account fichid.) Journal entry worksheet 1 10 11 12 13 Payroll for lanuary 115 is recorded and paid on 1/16. Be sure to accrue unemployment taxes and the emplover's matching share of FICA taxes. Record the transaction. Note: Eater detits before crests. Prepare all Januory journal entries and adjusting entries for items (a)-(v). Review the 'General tedger' and the adjusted 'Trial Balance' Tatis to see the effect of the transactions on the account balances. (If no entry is required for o transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 11 Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $23,304, which includes interest accrued in December and an additional $93 interest through January 17 . Record the transaction. Noter: Enter debits before credits. Prepare all January fournal 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 fournal entry required" in the first account field.) Journal entry worksheet 1 12 13 14 15 16 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: Eoter debiss before credits. Pregare all Hanuary 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.) Journal entry worksheet 1 13 16 17 26 >) On 1/27, OPC records sales of 30 units of irventory on account. Sales tax is charged but not yet collected or remitted. Record the cost of goods sold. rote: Erter debits before creans. Prepare all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adfusted 'Trial Balance' lahs 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.) Journal entry worksheet 1 14 15 16 17 18 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 povernmental organization that is exempt from sales tax. Record the sale transaction. Note: Entor debits before credns. 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 fleld.) Journal entry worksheet 17 18 A portion of the advance order from December (25 units) is dellvered 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 debts before oredits. Prepare all January joumal entries and adjusting entrles for items (a)- (v). Revilew the 'General Ledger' and the adfusted 'Trial Balance' Tabi to fied the effect of the transactions on the account balances. (If no entry is required for a transactionfoverit, select "No fournal entry required" in the first account field.) Journal entry worksheet 1+16 18 19 20 To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $97,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC recelved $87,753 from the bond issuance, which implies a market interest rate of 7 percent. Record the Journal entry worksheet 1.16 a total face value of $97,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $87,753 from the bond issuance, which implies a market interest rate of 7 percent. Record the transaction. Note: Enter debits before crediss. Prepate all January journal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adjusted 'Trial Balance' Thbs to see the effect of the transactions on the account balances. (If no entry is required for a transactionvevent, select "No journal entry required" in the first account field.) Journal entry worksheet 1 17 18 19 20 21 On 1/31, OPC records units-ol-production depreciation on the vehicle (truck). which was driven 2,000 miles this month. Record the transaction. Nate: Enter detits beforn crodits. 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. (II no entry is required for a transoction/event, select "No fournal entry required" in the first account field, ) Journal entry worksheet 1 18 26 OPC estimates that 2% 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. Prepare ail lanuary 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.) Journal entry worksheet On 1/31, adjust for January rent expired. Record the transaction. Note: Friter debits before credits. Prepare all January foumal entries and adjusting entries for items (a)-(v). Review the 'General Ledger' and the adjusted 'Trial Balance' entry ruquired" in the first accotunt firld.) Journal entry worksheet 119 22 23 24 Accrue lanuary 31 payroll on 1/31, which will be payable on February 1 . Be sure to occrue unemployment taxes and the employer's matching share of HCA taxes. Record the tranisoction. Note: Enter debts before creans. 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 joumal entry required 7 in the first account field.) Journal entry worksheet Accrue OPC's corporate incorne taxes on 1/31, estimated to be $4,290. Record the transaction. Hote, Enter debits before credits. Each journal entry is posted automatically to the general ledger. Use the drop down button to view the unadjusted, adjusted, or post-closing balances. Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. You will need to determine and enter the beginning and ending balances. Jse the dropdowns to select the accounts properly included on the classified balance sheet. The unadjusted, adjusted, or jost-closing balances will appear for each account, based on your selection. \begin{tabular}{|r|r|r|} \hline & \multicolumn{2}{|c|}{} \\ \hline & & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 6,380 & \\ \hline & 0 & \\ \hline \end{tabular} Ising the information from the requirements above, complete the 'Analysis' tab