Question

One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing trial balance prepared on December 31, at the end of its first year of operations, were:

Cash $ 19,500

Accounts Receivable 8,250

Allowance for Doubtful Accounts 885

Inventory 12,060

Prepaid Rent 1,600

Equipment 25,000

Accumulated Depreciation 2,400

Accounts Payable 0

Sales Tax Payable 500

FICA Payable 600

Withheld Income Taxes Payable 500

Salaries and Wages Payable 1,600

Unemployment Tax Payable 300

Unearned Revenue 4,500

Interest Payable 495

Note Payable (long-term) 22,000

Common Stock 13,300

Additional Paid-In Capital, Common 19,210

Retained Earnings 4,120

Treasury Stock 4,000

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%. 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 $1,600 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.

• Unearned 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.

• Note 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

1. On 1/01, OPC paid employees’ salaries and wages that were previously accrued on December 31.

2. A truck is purchased on 1/02 for $10,000 cash. It is estimated this vehicle will be used for 50,000 miles, after which it will have no residual value.

3. Payroll withholdings and employer contributions for December are remitted on 1/03.

4. OPC declares a $0.50 cash dividend on each share of common stock on 1/04, to be paid on 1/10.

5. A $950 customer account is written off as uncollectible on 1/05.

6. 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.

7. Sales taxes of $500 which had been collected and recorded in December are paid to the state on 1/07.

8. On 1/08, OPC issued 300 shares of treasury stock for $2,400.

9. Collections from customers on account, totaling $8,500, are recorded on 1/09.

10. On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company’s stock price is currently $5 per share.

11. OPC purchases on account and receives 70 units of inventory on 1/11 for $4,410.

12. The equipment purchased last year for $25,000 is sold on 1/15 for $23,000 cash. Record depreciation for the first half of January prior to recording the equipment disposal.

13. 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.

14. Having sold the equipment, OPC pays off the note payable in full on 1/17. The amount paid is $22,585 which includes interest accrued in December and an additional $90 interest through January 17.

15. On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged but not yet collected or remitted.

16. 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 governmental organization that is exempt from sales tax.

17. To obtain funds for purchasing new equipment, OPC issued bonds on 1/30 with a total face value of $90,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC received $81,420 from the bond issuance, which implies a market interest rate of 7 percent.

18. On 1/31, OPC records units-of-production depreciation on the vehicle (truck), which was driven 1,900 miles this month.

19. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method.

20. On 1/31, adjust for January rent expired.

21. 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.

22. Accrue OPC’s corporate income taxes on 1/31, estimated to be $3,750.

PLEASE HELP ME PREPARE AND ANSWER THE FOLLOWING WITH THE INFORMATION FROM ABOVE, I need help with all of the following including the two aspects with pictures.

- General Journal

- Income Statement

- Statement of Stcokholder's Equity (see picture)

- Balance Sheet

- Anlysis Questions (see picture)

Requirement General Journal General Ledger Trial Balance Income Statement Statement of Stockholders Balance Sheet Equity tab Analysis The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. You will need to determine and enter the begining balance and dividend account. Adjusted ONE PRODUCT CORP. Statement of Stockholders' Equity For the Month Ended January 31 Additional Paid- Common Stock In Capital, Common Retained Earinings Treasury Stock Begining Stock Issuances Net Income Dividends Ending < Income Statement Balance Sheet >

Answer 1

Transaction /Events	Date	General Journal	Debit	Credit
			$	$
a.	1/01	Salaries and Wages Payable	1600
		Cash		1600
b	1/02	Truck	10000
		Cash		10000
c	1/03	FICA Payable	600
		Withheld Income Taxes Payables	500
		Cash		1100
d.	1/04	Dividends	3075
		Dividend Payable		3075
e.	1/05	Allowance for Doubtful Accounts	950
		Accounts Receivable		950
f	1/06	Accounts Receivable	27825
		Sales		26250
		Sales tax payable		1575
f	1/06	Cost of goods Sold	11725
		Inventory		11725
g	1/07	Sales Tax Payable	500
		Cash		500
h	1/08	Cash	2400
		Treasury stock		2400
i	1/09	Cash	8500
		Accounts Receivable		8500
j	1/10	Dividend Payable	3075
		Cash		3075
k	1/11	Inventory(	4410
		Accounts Payable		4410
l	1/15	Depreciation expense	200
		Accumulated depreciation		200
l	1/15	Cash	23000
		Accumulated depreciation	2600
		Gain on disposal of equipment		600
		Equipment		25000
m	1/16	Salaries Expense	2000
		Payroll tax expense	200
		Withheld income tax payable		250
		unemployment tax payable		50
		cash		1600
		FICA payable		300
n	1/17	Interest Expense	90
		Note Payable	22000
		Interest Payable	495
		Cash		22585
o	1/27	Accounts Receivable	4770
		Sales		4500
		Sales Tax Payable		270
o	1/27	Cost of goods sold	1910
		Inventory		1910
q	1/30	Cash	81420
		Discount on bonds Payable	8580
		Bonds Payable		90000
r	1/31	Depreciation Expense	380
		Accumulated Depreciation:Truck		380
s	1/31	Rent expense	1600
		Prepaid rent		1600
t	1/31	Salaries expense	2000
		Payroll tax expense	200
		Withheld income taxes payable		250
		Salaries and wages Payable		1600
		FICA Payable		300
		Unemployment tax payable		50
v	1/31	Income tax expense	3750
		Income taxes payable		3750