[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 selts 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 pollcy is to use the FIFO method, recorded using a perpetual inventory system. - The $1,660 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 withhoidings 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 arlses 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' salarles and wages that were previously accrued on December 31. b. A truck is purchased on 1/02 for $9,000 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 $965 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. 9. 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. i. Collections from customers on account, totaling $11,214, are recorded on 1/09. 1. On 1/10, OPC distributes the $0.50 cash divldend 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 $4,200. 1. The equipment purchased last year for $28,600 is sold on 1/15 for $27,200 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 $22,894, which includes Interest accrued in December and an additional $92 interest through January 17. a. 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. govemmental 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 $93,000, stated interest rate of 5 percent, annual compounding, and slx-year maturity date. OPC recelved $84,134 from the bond issuance, which implies a market interest rato of 7 percent. sitale. k. OPC purchases on account and recelves 70 units of inventory on 1/11 for $4,200. 1. The equipment purchased last year for $28,600 is sold on 1/15 for $27,200 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 $22,894, which includes interest accrued in December and an additional $92 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 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 $93,000, stated interest rate of 5 percent, annual compounding, and six-year maturity date. OPC recelved $84,134 from the bond issuance, which implies a market interest rate of 7 percent. r. On 1/31, OPC records units-of-production depreclation on the vehicle (truck), which was driven 2,000 milles 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 $4,220. Prepare all January jo - General Journal ind 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.) Roquired information \begin{tabular}{|l|l|l|} \hline & & Inventory \\ \hline & & \\ \hline & January 30 & Cash \\ \hline & & Discount on Bonds Payable \\ \hline & & Bonds Payable \\ \hline & & \\ \hline 22 & January 31 & Depreciation Expense \\ \hline & & Accumulated Depreciation-Vehicles \\ \hline & & \\ \hline 23 & January 31 & Bad Debt Expense \\ \hline & & Allowance for Doubtful Accounts \\ \hline & & \\ \hline 24 & January 31 & Rent Expense \\ \hline & & Prepaid Rent \\ \hline & & \\ \hline & & Salaries and Wages Expense \\ \hline & & Payroll Tax Expense \\ \hline \end{tabular} 1 Roquired information 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 employer's matching share of FICA taxes. v. Accrue OPC's corporate income taxes on 1/31, estimated to be $4,220. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. You will need the determine and enter the beginning and ending balances. use tre uropoowns to serece the accouncs properiy inciuced on tne crassmed dalance sneec. ine unadjusced, ad] post-closing balances will appear for each account, based on your selection. 1 Required information s. OPC estimates that 2% of the ending accounts recelvable balance will be uncollectil 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 ac employer's matching share of FICA taxes. v. Accrue OPC's corporate income taxes on 1/31, estimated to be $4,220. Using the information from the requirements above, complete the 'Analysis' tab. Rather than distribute a cash dividend In January (see item J), OPC considered issuing a 30 percent stock dividend on common stock. What journal entry would OPC record had a 30 percent stock dividend been issued? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the issuance of 30 percent stock dividend. Noter Enter debite before credits. What journal entry would OPC record had a 10 percent stock dividend been issued? (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account fleld.) Journal entry worksheet Record the issusance of 10 percent stock dividend