$ 60,400 28,400 $ 3,900 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 38,000 32,400 172,000 16,500 237,000 73,800 $331,200 $331,200 During January 2021, the following transactions occur: January 1 Purchase equipment for $21,200. The company estimates a residual value of $3,200 and a four-year service life. January 4 Pay cash on accounts payable, $11,200. January 8 Purchase additional inventory on account, $99,900. January 15 Receive cash on accounts receivable, $23,700. January 19 Pay cash for salaries, $31,500. January 28 Pay cash for January utilities, $18,200. January 30 Sales for January total $237,000. All of these sales are on account. The cost of the units sold is $123,500. The following information is available on January 31, 2021. 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 $4,700 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 $34,300. e. Accrued income taxes at the end of January are $10,700. Balance Sheet Assets January 31, 2021 Liabilities Current Liabilities: Current Assets: Cash $ $ 105,200 Accounts Payable Salaries Payable Income Tax Payable 34,300 2,000 241,700 (9,460) 14,400 Accounts Receivable Allowance for Uncollectible Accounts Inventory Interest Receivable 10,700 135 Total Current Liabilities 150,200 Total Current Assets 248,775 Total Liabilities 150,200 Noncurrent Assets: Land Stockholders' Equity Common Stock Retained Earnings 237,000 86,800 Equipment Accumulated Depreciation Notes receivable 172,000 21,200 (375) 32,400 323,800 Total Stockholders' Equity 474,000 Total Liabilities & Stockholders' Equity Total Assets $ $ 474,000 Income Statement Analysis > Choose the appropriate accounts to complete the company's income statement. Select 'adjusted' from the dropdown will then populate the balances in those accounts from the adjusted trial balance. Adjusted TNT FIREWORKS Multiple-Step Income Statement For the year ended January 31, 2021 Sales Revenue 237,000 Cost of Goods Sold (123,500) Gross profit Salaries Expense 65,800 Utilities Expense 18,200 Depreciation Expense 375 Bad Debt Expense 5,560 $ 113,500 89,935 23,565 135 Total operating expenses Operating income Interest Revenue Income before taxes Income Tax Expense Net income 23,700 10,700 13,000 $
