0 Required information Exercise 7-21 Complete the accounting cycle using long-term asset transactions (L07-4, 7-7) [The following information applies to the questions displayed below) On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59,100 25,000 $ 2,600 Accounta Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (58, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,700 16,800 159,000 15,200 224,000 55,600 $ 297,400 $ 297,400 During January 2021, the following transactions occur January 1 Purchase equipment for $19,900. The company estimates a residual value of $1,900 and a five-year service life. January 4 Pay cash on accounts payable, $9,900. January 8 Purchase additional inventory on account, $86,900. January 15 Receive cash on accounts receivable, $22,400. January 19 Pay cash for salaries, $30,200. January 28 Pay cash for January utilities, $16,900. January 30 Sales for January total $224,000. All of these sales are on account. The cost of the units sold is $117,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,400 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes recelvable for January d. Unpaid salaries at the end of January are $33,000, e. Accrued income taxes at the end of January are $9,400. Exercise 7-21 Part 2 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is required for a particula select particular "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet