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: Credit Debit $ 59,100 25,800 $ 2,600 Accounts 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 Year 1, 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: 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 receivable 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 7-21B Part 1 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, sele "No Journal Entry Required" in the first account field.)