4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-Step Income...

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4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-Step Income Statement For the month ended January 31, Year 1 Sales Revenue Cost of Goods Sold Gross Profit Expenses Salaries Expense Utilities Expense Depreciation Expense Bad Debt Expense Total Operating Expenses Operating Income Interest Revenue Income before taxes Income Tax Expense Net Income $ $ 0 0 0 0 0 3. Prepare an adjusted trial balance as of January 31, Year 1. Note Receivable Land Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Income Tax Payable Accounts Payable Income Tax Expense Common Stock Retained Earnings Interest Revenue Sales Revenue Cost of Goods Sold Depreciation Expense Salaries Expense Utilities Expense X Answer is not complete. Bad Debt Expense Interest Receivable Salaries Payable Adjusted Trial Balance January 31, Year 1 Debit 13,800 31,200 171,000 21,100 10,600 123,000 300 65,600 18,100 5,580 130 Credit 300 10,600 236,000 72,400 130 236,000 34,200 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 $4,600 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 receivable for January. d. Unpaid salaries at the end of January are $34,200. e. Accrued income taxes at the end of January are $10,600. Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Debit $ 60,300 28,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,900 31,200 171,000 $328,600 During January Year 1, the following transactions occur: Credit $ 3,800 16,400 236,000 72,400 $328,600 January 1 Purchase equipment for $21,100. The company estimates a residual value of $3,100 and a five-year service life. January 4 Pay cash on accounts payable, $11,100. January 8 Purchase additional inventory on account, $98,900. January 15 Receive cash on accounts receivable, $23,600. January 19 Pay cash for salaries, $31,400. January 28 Pay cash for January utilities, $18,100. January 30 Sales for January total $236,000. All of these sales are on account. The cost of the units sold is $123,000. Information for adjusting entries: 4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-Step Income Statement For the month ended January 31, Year 1 Sales Revenue Cost of Goods Sold Gross Profit Expenses Salaries Expense Utilities Expense Depreciation Expense Bad Debt Expense Total Operating Expenses Operating Income Interest Revenue Income before taxes Income Tax Expense Net Income $ $ 0 0 0 0 0 3. Prepare an adjusted trial balance as of January 31, Year 1. Note Receivable Land Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Income Tax Payable Accounts Payable Income Tax Expense Common Stock Retained Earnings Interest Revenue Sales Revenue Cost of Goods Sold Depreciation Expense Salaries Expense Utilities Expense X Answer is not complete. Bad Debt Expense Interest Receivable Salaries Payable Adjusted Trial Balance January 31, Year 1 Debit 13,800 31,200 171,000 21,100 10,600 123,000 300 65,600 18,100 5,580 130 Credit 300 10,600 236,000 72,400 130 236,000 34,200 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 $4,600 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 receivable for January. d. Unpaid salaries at the end of January are $34,200. e. Accrued income taxes at the end of January are $10,600. Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Debit $ 60,300 28,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,900 31,200 171,000 $328,600 During January Year 1, the following transactions occur: Credit $ 3,800 16,400 236,000 72,400 $328,600 January 1 Purchase equipment for $21,100. The company estimates a residual value of $3,100 and a five-year service life. January 4 Pay cash on accounts payable, $11,100. January 8 Purchase additional inventory on account, $98,900. January 15 Receive cash on accounts receivable, $23,600. January 19 Pay cash for salaries, $31,400. January 28 Pay cash for January utilities, $18,100. January 30 Sales for January total $236,000. All of these sales are on account. The cost of the units sold is $123,000. Information for adjusting entries: