Required information Exercise 9-21 Complete the accounting cycle using long-term liability transactions (LO9-2, 9-8) (The following information applies to the questions displayed below.) On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 12,000 Accounts Receivable 35,600 Inventory 152,800 Land 75,300 Buildings 128,000 Allowance for Uncollectible Accounts $ 2,600 Accumulated Depreciation 10,400 Accounts Payable 26,500 Common Stock 208,000 Retained Earnings 156,200 Totals $403,700 $403,700 During January 2021, the following transactions occur January Borrow $100,000 from Captive Credit Corporation. The installment note bears interest at 5 annually 1 and matures in 5 years. Payments of $2,038 are required at the end of each month for 60 months. January Receive $31,800 from customers on accounts receivable. 4 January Pay cash on accounts payable, $19,000. 10 January Pay cash for salaries, $29,700. 15 January Firework sales for the month total $198,000. Sales include $65,800 for cash and $132,200 on account. 30 The cost of the units sold is $116,500. January Pay the first monthly installment of $2,038 related to the $108,000 borrowed on January 1. Round your 31 interest calculation to the nearest dollar. 1. Record each of the transactions listed above. (If no entry is required for a particular transaction/event, select " Required" in the first account field.) View transaction list Journal entry worksheet Borrow $108,000 from Captive Credit Corporation. The installment note bears interest at 5% annually and matures in 5 years. Payments of $2,038 are required at the end of each month for 60 months. Record the issuance of the long-term note payable. Note: Enter debits before credits Date General Journal Debit Credit January 01 Record entry Clear entry View general Journal Exercise 9-21 Part 2 The following information is available on January 31, 2021. a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $24,800. 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. Unpaid salaries at the end of January are $26,900, d. Accrued income taxes at the end of January are $8,800. e. $19,581 of the long-term note payable balance will be paid over the next year. 2. Record the adjusting entries on January 31 for the above transactions, (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 3 4 5 > Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $24,800. Prepare View transaction list Journal entry worksheet