Question

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

Accounts Payable	$	8,200
Accounts Receivable		6,900
Accumulated Depreciation—Equipment		6,700
Cash		3,640
Cash Equivalents		1,640
Common Stock		10,400
Deferred Revenue		3,900
Equipment		30,300
Notes Payable (long-term)		12,400
Prepaid Rent		3,420
Retained Earnings		4,810
Supplies		510

The following transactions occurred during January.

1. Received $2,420 cash on 1/1 from customers on account for recording services completed in December.
2. Wrote checks on 1/2 totaling $4,370 for amounts owed on account at the end of December.
3. Purchased and received supplies on account on 1/3, at a total cost of $200.
4. Completed $3,900 of recording sessions on 1/4 that customers had paid for in advance in December.
5. Received $4,750 cash on 1/5 from customers for recording sessions started and completed in January.
6. Wrote a check on 1/6 for $4,000 for an amount owed on account.
7. Converted $1,010 of cash equivalents into cash on 1/7.
8. On 1/15, completed EFTs for $1,400 for employees’ salaries and wages for the first half of January.
9. Received $2,940 cash on 1/31 from customers for recording sessions to start in February.

Required:

1. 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.
2. 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 $4 cash to the account for interest earned in January.
   n. The bank deducted $4 for service charges.
3. Prepare adjusting journal entries on 1/31 in 'General Journal' Tab. (these are shown as items 15-21).
   o. Depreciation for the month is $240.
   p. Salaries and wages totaling $1,500 have not yet been recorded for January 16–31.
   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 $1,700 on January income has not yet been recorded or paid.
4. Review the adjusted 'Trial Balance' as of January 31.
5. Prepare an income statement for the period ended January 31 in the 'Income Statement' Tab.
6. Prepare a bank reconciliation in the 'Bank Reconciliation' Tab.
7. Prepare a classified balance sheet as of January 31 in the 'Balance Sheet' Tab.
8. Using the information from the requirements above, complete the 'Analysis' tab.

Requirement General Journal General Ledger Trial Balance Income Statement Bank Reconcilation Balance Sheet Analysis 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 Indicate whether PRS has met its loan covenant that requires a minimum current ratio of 1.2. Calculate the net profit margin at January 31. (Round your answer to 2 decimal places.) Net Profit Margin Indicate whether PRS has achieved its objective of 10 percent. < Balance Sheet Analysis >

The second picture it only half way done, please i need it completely done. Thanks.

Answer 1

Pulse Recording Studio (PRS)
Bank Reconciliation
At January 31
Bank Statement		Company's Books
Ending balance per bank statement	5580	Ending balance per Cash account		4990
Additions:		Additions:
Deposits in transit	2940	Interest earned		4
	8520			4994
Deductions:		Deductions:
Outstanding checks	4000	NSF check	470
		Bank service charges	4
				474
Up-to-date cash balance	4520	Up-to-date cash balance		4520