Check my w Part 3 of 7 Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (L07-4, 7-7) The following information applies to the questions displayed below.) 3.57 points On January 1, Year 1, the general ledger of a company includes the following account balances: Credit Debit $ 59,700 27,000 $ 3,200 eBook Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,300 24,000 165,000 15,800 230.088 64,000 $313,800 $313,000 References During January Year 1, the following transactions occur. January 1 Purchase equipment for $20,500. The company estimates a residual value of $2,500 and a six-year service life. January 4 Pay cash on accounts payable, $10,500. January 8 Purchase additional inventory on account, $92,900. January 15 Receive cash on accounts receivable, $23,080. January 19 Pay cash for salaries, $30,880. January 28 Pay cash for January utilities, $17,500. January 30 Sales for January total $230,000. All of these sales are on account. The cost of the units sold is $120,000. 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 $4,000 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 $33,600. e. Accrued income taxes at the end of January are $10,000. 3. Prepare an adjusted trial balance as of January 31, Year 1. Debit Credit Adjusted Trial Balance January 31, Year 1 Accounts Cash Accounts Receivable Inventory Note Receivable able Land Allowance for Uncollectible Accounts Accounts Payable Common Stock Sales Revenue Retained Earnings Equipment Salaries Expense Utilities Expense Income Tax Expense Cost of Goods Sold Depreciation Expense Bad Debt Expense Interest Receivable Interest Revenue Salaries Payable Accumulated Depreciation Income Tax Payable Totals