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On January $1,$ Pulse Recording Studio $($PRS$)$ had the following account balances.

Accounts Payable $ $8,400$

Accounts Receivable $6,700$

Accumulated Depreciation$$Equipment $6,600$

Cash $3,600$

Cash Equivalents $1,600$

Common Stock $10,300$

Deferred Revenue $4,000$

Equipment $30,300$

Notes Payable $($long$-$term$)12,400$

Prepaid Rent $3,510$

Retained Earnings $4,490$

Supplies $480$

The following transactions occurred during January.

Received $$2,460$ cash on $1/1$ from customers on account for recording services completed in December.

Wrote checks on $1/2$ totaling $$4,280$ for amounts owed on account at the end of December.

Purchased and received supplies on account on $1/3,$ at a total cost of $$200.$

Completed $$4,000$ of recording sessions on $1/4$ that customers had paid for in advance in December.

Received $$4,600$ cash on $1/5$ from customers for recording sessions started and completed in January.

Wrote a check on $1/6$ for $$4,120$ for an amount owed on account.

Converted $$1,040$ of cash equivalents into cash on $1/7.$

On $1/15,$ completed EFTs for $$1,350$ for employees$$ salaries and wages for the first half of January.

Received $$2,970$ cash on $1/31$ from customers for recording sessions to start in February.

Required:

Prepare journal entries for the January transactions. Review the 'General Ledger' and the unadjusted 'Trial Balance' Tabs to see the effect of the transactions on the account balances.

Prepare journal entries for items $($j$)($n$)$ from the bank reconciliation.

j$.$ The bank deducted $$470$ for an NSF check from a customer deposited on January $5.$

k$.$ The check written January $6$ has not cleared the bank, but the January $2$ payment has cleared.

l$.$ The cash received and deposited on January $31$ was not processed by the bank until February $1.$

m$.$ The bank added $$3$ cash to the account for interest earned in January.

n$.$ The bank deducted $$3$ for service charges.

Prepare adjusting journal entries on $1/31$ in 'General Journal' Tab. $($these are shown as items $15$ to $21).$

o$.$ Depreciation for the month is $$210.$

p$.$ Salaries and wages totaling $$900$ have not yet been recorded for January $16$ to $31.$

q$.$ Prepaid Rent will be fully used up by March $31.$

r$.$ Supplies on hand at January $31$ were $$200.$

s$.$ Received $$200$ invoice for January electricity charged on account to be paid in February but is not yet recorded.

t$.$ Interest on the promissory note of $$28$ for January has not yet been recorded or paid.

u$.$ Income tax of $$2,500$ on January income has not yet been recorded or paid.

Review the adjusted 'Trial Balance' as of January $31.$

Prepare an income statement for the period ended January $31$ in the 'Income Statement' Tab.

Prepare a bank reconciliation in the 'Bank Reconciliation' Tab.

Prepare a classified balance sheet as of January $31$ in the 'Balance Sheet' Tab.

Using the information from the requirements above, complete the 'Analysis' tab.Using the information from the requirements above, complete the 'Analysis' tab.

Calculate the current ratio at January $31.$

$($Round your answer to $2$ decimal places.$)$

Current Ratio not attempted

Indicate whether PRS has met its loan covenant that requires a minimum current ratio of $1\mathrm{.}2.$

not attempted

Calculate the net profit margin at January $31.$

$($Round your answer to $2$ decimal places.$)$

Net Profit Margin not attempted $\%$

Indicate whether PRS has achieved its objective of $10$ percent.

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