requirea informaton 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 $ 59,600 26,800 $ 3,100 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounta Inventory Notes Receivable (51, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,200 22,800 164,000 15,700 229,000 62.600 $310,400 $310,400 During January 2021, the following transactions occur January 1 Purchase equipment for $20,000. The company estimates a residual value of $2,400 and a tour-year service lite. January 4 Pay cash on accounts payable, $10,400. January 3 Purchase additional inventory on account, 591,900. January 15 Receive cash on accounts receivable, $22.900. January 19 Pay cash for salaries, 530,700. January 20 Pay cash for January utilities. $17,400. January 20 Sales for January total 9229.000. All of these sales are on account. The cost of the units sold is $119,500. 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 $3,900 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 balonce calculated in the general ledger) c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,500. e. Accrued income taxes at the end of January are $9,900, 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.) TNT FIREWORKS Balance Sheet January 31, 2021 Assets Liabilities 0 Total Current Liabilities Stockholder's Equity Total Current Assets 0 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ Total Assets 0 0 s ULLUUILCIU.) View transaction list Journal entry worksheet