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$($SEE IMAGES FOR FULL INFORMATION$)$ General Journal tab $-$ Prepare all January journal entries and adjusting entries for items $($a$)$ to $($s$).$ Review the 'General

Ledger' and the adjusted '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 J One Trick Pony $($OTP$)$ incorporated and began operations near the end of the year, resulting in the following post$-$closing balances at January Transactions

a$.$ Included in OTP's January $1$ Accounts Receivable balance is a $$2,400$ balance due from Jeff Letrotski. Jeff is having cash flow

problems and cannot pay the $$2,400$ balance at this time. On $01/01,$ OTP arranges with Jeff to convert the $$2,400$ balance to a six$-$

month note, at $10\%$ annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and

payable to OTP on July $1$ of this year.

b$.$ OTP paid a $$560$ insurance premium on $01/02,$ covering the month of January; the payment is recorded directly as an expense.

c$.$ OTP purchased an additional $200$ units of inventory from a supplier on account on $\frac{01}{05}$ at a total cost of $$8,000,$ with terms $\frac{n}{30}.$

d$.$ OTP paid a courier $$400$ cash on $\frac{01}{05}$ for same$-$day delivery of the $200$ units of inventory.

e$.$ The $40$ units that OTP's customer paid for in advance in December are delivered to the customer on $01/06.$

f$.$ On $01/07,$ OTP received a purchase allowance of $$1,200$ on account, and then paid the amount necessary to settle the balance

owed to the supplier for the $\frac{1}{05}$ purchase of inventory $($in c$).$

g$.$ Sales of $60$ units of inventory occurring during the period of $01/07-01/10$ are recorded on $\frac{01}{10}.$ The sales terms are $\frac{n}{30}.$

h$.$ Collected payments on $01/14$ from sales to customers recorded on $01/10.$

i$.$ OTP paid the first $2$ weeks' wages to the employees on $\frac{01}{16}.$ The total paid is $$2,880.$

j$.$ Wrote off a $$950$ customer's account balance on $01/18.$ OTP uses the allowance method, not the direct write$-$off method.

k$.$ Paid $$2,800$ on $\frac{01}{19}$ for December and January rent. See the earlier bullets regarding the December portion. The January portion

will expire soon, so it is charged directly to expense.

OTP recovered $$430$ cash on $\frac{01}{26}$ from the customer whose account had previously been written off on $01/18.$

m$.$ An unrecorded $$300$ utility bill for January arrived on $01/27.$ It is due on $\frac{02}{15}$ and will be paid then.

n$.$ Sales of $70$ units of inventory during the period of $\frac{01}{10}-\frac{01}{28},$ with terms $\frac{n}{30},$ are recorded on $01/28.$

o$.$ Of the sales recorded on $\frac{01}{28},10$ units are returned to OTP on $\frac{01}{30}.$ The inventory is not damaged and can be resold. OTP

charges sales returns to a contra$-$revenue account.

p$.$ On $01/31,$ OTP records the $$2,880$ employee salary that is owed but will be paid February $1.$

q$.$ OTP uses the aging method to estimate and adjust for uncollectible accounts on $01/31.$ All of OTP's accounts receivable fall into a

single aging category, for which $10\%$ is estimated to be uncollectible. $($Update the balances of both relevant accounts prior to

determining the appropriate adjustment.$)$

r$.$ Accrue interest for January on the notes payable on $01/31.$

s$.$ Accrue interest for January on Jeff Letrotski's note on $01/31($see a$).$

December $31$:

The following information is relevant to the first month of operations in the following year:

OTP will sell inventory at $$140$ per unit. OTP's January $1$ inventory balance consists of $50$ units at a total cost of $$2,000.$ OTP's policy

is to use the FIFO method, recorded using a perpetual inventory system.

In December, OTP received a $$5,600$ payment for $40$ units OTP is to deliver in January; this obligation was recorded in Deferred

Revenue. Rent of $$1,400$ was unpaid and recorded in Accounts Payable at December $31$ For the month ended January $31,$

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