Exercise 11-41 (Algo) General ledger exercise; Long-term asset transactions (L011-2, 11-4, 11-8, 11-9) On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances Accounts Accounts Receivable Cash Debit $ 169, 480 19,400 44,800 347,000 362,500 Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings Totals $ 179,000 21,500 527,000 215,300 $943,100 $ 943,100 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account. $332.800 b. Sold inventory on account. $593,200. The inventory cost $349,600. Received cash from customers on account. $565,700. d. Paid cash on account $335,500 e Paid cash for salaries, $101.700, and for utilities, $59.700. In addition, Parts Unlimited had the following transactions during the year: In addition Parts Unlimited had the following transactions during the year April 1Purchased went for $102,000 un note payable, doe in 12 months plus interest. The company also paid cash of 53,000 for and $4.500 for installation and testing of the equipment. The equipment has an estimated residual value of $12,400 and a ten-year service life June 30 Purchased patent for $47.000 from third party marketing company related to the packaging of the company's products, The patient has 20 year useful life, after which it is expected to have no value October 1 Sold equipment for $37,900. The equipment cost $67,700 and had accumulated depreciation of $44,400 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is 39,200. (Hint: Total accumulated depreciation goals the amount at the beginning of the year plus the amount recorded for the current year) November 15 Several older pieces of equipment were improved by replacing or components at a cost of $61,100. These improvements are expected to enhance the equipment's operating capabilities. Record this transaction using Alternative 2- capitalitation of new cost) Year-end adjusting entries a Depreciation on the equipment purchased on April 1, 2021, calculated using the straight line method. b. Depreciation on the remaining equipment $28,500 C Amortization of the patent purchased on June 30, 2021, using the straight line method d. Accrued interest payable on the note payable e Equipment with an original cost of $73100 had the following related information at the end of the year accumulated depreciation of $47.300 expected cash flows of $16,400, and a fair value of $14,300. 1. Accrued Income taxes at the end of the year are $19,600, General General Tecome Requirement Inal Balance Balance Sheet Journal Analysis Ledger Statement Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" the first accounted View transaction list Journal entry worksheet Record the purchase of inventory on account, $332,800, Note: Enter debits before credits Date General Journal Debit Credit Jan 01 332 800 Inventory Accounts payable 332 800 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the sale of inventory on account, $593,200. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Prepare a multiple step Income statement for the period ended December 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post closing balances will appear for each accoun based on your selection Unadjusted Parts Unlimited Income Statement For the year ended December 31, 2021 0 0 0 Operating expenses 0 0 0 0 0 0 Total operating expenses 0 0 0 Operating income 0 0 0 0 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare a classified balance sheet as of December 31, 2021. Choose the appropriate accounts to complete the company's balance shee The unadjusted, adjusted, or post closing balances will appear for each account, based on your selection Unadjusted Parts Unlimited Balance Sheet December 31, 2021 Assets Liabilities $ 0 0 0 0 0 0 0 0 0 0 0 Total liabilities 0 Total current assets Noncurrent assets Stockholders' equity 0 0 0 0 oooooo Total stockholders' equity Total liabilities and stockholders oquity $ 0 $ Total assets Journal Leager statement Using the information from the requirements above, complete the 'Analysis' (Round "fixed asset turnover ratio answer to 2 decimal places.) Analyze how well Parts Unlimited manages its assets (a) Calculate the fixed asset turnover ratio for the year, using the total amount of property, plant, and equipment (not of accumulated deprecation). If the industry average fixed asset turnover is 0.75, is the company more or loss officient at generating sales with its fixed assets than other companies in the same industry? (Hint For the amount of fixed assets, use the net amount of all tangible long term assets) The foxed asset turnover ratio is The company is more efficient at generating sales with its foxed assets (b) Suppose the equipment purchased on April 1, 2021, had been depreciated using the units of production method. At the time of purchase expected output was 20,000 units, and actual production for 2021 was 3000 units Calculate the amount of depreciation expense that would have been recorded and determine the difference in net income and total assets for 2021 (ignoring tax effects) Units of production depreciation Depreciation exponse under units of production method is higher (True or False) income and total assets in 2021 would have been (c) The transaction on June 30, 2021 shows the company purchased a patent for $47.000 from a third party marketing company Suppose the company instead spent $47.000 to internally develop the new packaging technology, which it then patented Calculate the difference in net income and total assets for 2021 ignoring tax effects) Additional expense for 2021 The income and total assets in 2021 would have been higher (True or Falso)