Required information 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: $19,500 8,250 885 12,060 1,600 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Sales Tax Payable FICA Payable Withheld Income Taxes Payable Salaries and Wages Payable Unemployment Tax Payable Unearned Revenue Interest Payable Note Payable (long-term) Common Stock Additional Paid-In Capital, Common Retained Earnings Treasury Stock 25,000 2,400 0 500 600 500 1,600 300 4.500 495 22,000 13,300 19,210 4,120 4,000 On 1/01, OPC pald employees' salaries and wages that were previously accrued on December 31 Is purchased on 1/02 for $10,000 cash. It is estimated this vehicle will be 2. for 50,000 miles, after which it will have no residual value Payroll withholdings and employer contributions for December are remitted on 1/03 res a $0.50 cash dividend on each share of common stock on 1/04, to be 4 pald on 1/10 A $950 customer account is written off as uncollectible on 1/05 5. On 1/06, recorded sales of 175 units of inventory on account. Sales tax is charged 6. but not yet collected or remitted to the state Sales taxes of $500 which had been collected and recorded in December are pald 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 10. 11. OPC purchases on account and recelves 70 units of inventory on 1/11 for $4.410 On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share The equipment purchased last year for $25,000 is sold on 1/15 for $23,000 cash. 12. Record depreciation for the first half of January prior to recording the equipment disposal. Payroll for January 1-15 is recorded and pald on 1/16. Be sure to accrue unemployment taxes and the employer's matching share of FICA taxes Having sold the equipment, OPC pays off the note payable in full on 1/17. The 14. amount pald is $22,585 which includes Interest accrued in December and an additional $90 Interest through January 17 On 1/27, OPC records sales of 30 units of Inventory on account. Sales tax is charged 9. but not yet collected or remitted. 15. A portion of the advance order from December (25 units) is dellvered on 1/29. No 16. sales tax is collected on this transaction because the customer is a United States governmental organization that is exempt from sales tax. 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 recelved $81,420 from the bond Issuance, which implies a market Interest rate of 7 percent. 17 4/4 nDr rnrn.de n6 n.^.4...-+'..n n e but not yet collected or remitted to the state Sales taxes of $500 which had been collected and recorded in December are paid the state on 1/07 1/08, OPC issued 300 shares of treasury stock for $2.400 llections from customers on account, totaling $8,500, are recorded on 1/09 On 1/10, OPC distributes the $0.50 cash dividend declared on January 4. The company's stock price is currently $5 per share 10. 11. OPC purchases on account and receives 70 units of inventory on 1/11 for 12. Record depreciation for the first half of January prior to recording the equipment $4.410 The equipment purchased last year for $25,000 is sold on 1/15 for $23.000 cash. disposal. 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 Having sold the equipment, OPC pays off the note payable in full on 1/17. The 13. 14. amount paid is $22,585 which includes interest accrued in December and an additional $90 interest through January 17 On 1/27, OPC records sales of 30 units of inventory on account. Sales tax is charged 15. A portion of the advance order from December (25 units) is delivered on 1/29. No 16. sales tax is collected on this transaction because the customer is a United States governmental organization that is exempt from sales tax. 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 17 and six-year maturity date. OPC received $81,420 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 1,900 miles this month. OPC estimates that 2% of the ending accounts receivable balance will be uncollectible. Adjust the applicable accounts on 1/31, using the allowance method 18. 19. 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 Import a new lis 1 On 1/01, OPC paid employees' salaries and wages that were previously accrued on December 31. Record the transaction. 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. Record the transaction. 3 Payroll withholdings and employer contributions for December are remitted on 1/03. Record the transaction. 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 : journal entry has been entered Record entry Clear entry A to 50 customer account is written off as uncollectible on 1/05. Record the transaction. 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. Record the transaction. 7 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 transaction. 8 Sales taxes of $500 that had been collected and recorded in December are paid to the state on 1/07. Record the transaction. On 1/08, OPC issued 300 shares of treasury stock for Note: -journal entry has been entered Record entry Clear entry 9 On 1/08, OPC issued 300 shares of treasury stock for 0 Collections from customers on account, totaling $8,500, D On 1/10, OPC distributes the $o.50 cash dividend $2,400. Record the transaction. are recorded on 1/09. Record the transaction declared on January 4. The company's stock price is currently $5 per share. Record the transaction. D OPC purchases on account and receives 70 units of inventory on 1/11 for $4,410. Record the transaction. The equipment purchased last year for $25,000 is sold on 1/15 for $23,000 cash. Record depreciation for the first half of lanuarv nrinr to recordinn the eauinment disnosal Note : - journal entry has been entered