:Comprehensive Problem 6 Help Say Required information Exercise 9-21 Complete the accounting cycle using long-term liability transactions (L09-2, 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: Debit Credit Accounts Receivable Account Cash $ 13,200 38,000 154,000 87,300 140,000 Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Metained Earnings Totals $ 3,800 11,600 39,700 220,000 157,400 $432,500 5432,500 1 4 During January 2021, the following transactions occur: January Borrow $120,000 from Captive Credit Corporation. The installment note bear interest at 5 annually and matures in 5 years. Payments of 32,265 are required at the end of each month for 60 months. January Receive 533,000 from customers on accounts receivable January Pay cash on accounts payable, $1,000. 16 Jangay Pay cash for salaries,530,900. 15 January Firework sales for the month total 5206,000. Sale inelude $67.000 for cash and $139,000 on account. 30 The cost of the unite sold 5122,500 January Pay the first monthly installment of $2.265 related to the $120.000 borrowed on January 1. Round your 31 Interest calculation to the nearest dollar. Exercise 9-21 Part 2 The following information is available on January 31, 2021 2 Don 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 $26,000 The company estimates future uncollectible accounts. The company determines $5.000 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. Unpaid salaries at the end of January ate $28,00 d. Accrued income taxes at the end of January are $10,000 e $21757 of the long-term note payable balance will be paid over the next year A View transaction list Journal entry worksheet 1 > N 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 $26,000. Prepare the adjusting journal entry for depreciation. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general Journal Accrued income taxes at the end of January are $10,000. Prepare the adjusting entry for Income tax. Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general Journal