Exercise 7-21 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, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Cash Accounts Receivable Debit $ 59,500 Credit 26,600 Allowance for Uncollectible $ 3,000 Accounts Inventory 37,100 Notes Receivable (5%, due in 21,600 2 years) Land 163,000 Accounts Payable Common Stock Retained Earnings 15,600 228,000 61,200 Totals $307,800 $307,800 During January 2021, the following transactions occur: January 1 Purchase equipment for $20,300. The company estimates a residual value of $2,300 and a five-year service life.. January 4 Pay cash on accounts payable, $10,300. January 8 Purchase additional inventory on account, $90,900. January 15 Receive cash on accounts receivable, $22,800. January 19 Pay cash for salaries, $30,600. January 28 Pay cash for January utilities, $17,300. January 30 Sales for January total $228,000. All of these sales are on account. The cost of the units sold is $119,000. 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 $3,800 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 2% 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 $33,400 e. Accrued income taxes at the end of January are $9,800. Exercise 7-21 Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2021 TNT FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2021 Expenses $ Total Operating Expenses 0 Exercise 7-21 Part 5 5. Prepare a classified balance sheet as of January 31, 2021. (Deductible amounts should be indicated with a minus sign.) Assets TNT FIREWORKS Balance Sheet January 31, 2021 Liabilities Total Current Liabilities Total Current Assets Stockholder's Equity Total Stockholders' Equity 0 Total Liabilities and Stockholders' Total Assets $ 0 $ 0 Equity Exercise 7-21 Part 6 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the closing entry for revenues. Note: Enter debits before credits. Date January 31 2021 Record entry General Journal Debit Credit View general journal Clear entry >