Exercise 11-41 (Algo) General ledger exercise; Long-term asset transactions [LO11-2, 11-4, 11-8, 11-9] On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances: Accounts Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings Totals Debit $175,400 Credit 25,400 50,800 353,000 376,500 $185,000 27,800 533,000 235,300 $981,100 $981,100 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account, $338,800. b. Sold inventory on account, $617,200. The inventory cost $355,600. c. Received cash from customers on account, $571,700. d. Paid cash on account, $341,500. e. Paid cash for salaries, $107,700, and for utilities, $65,700. In addition, Parts Unlimited had the following transactions during the year: April 1 Purchased equipment for $108,000 using a note payable, due in 12 months plus 6% interest. The company also paid cash of $4,500 for freight and $5,100 for installation and testing of the equipment. The equipment has an estimated residual value of $12,000 and a ten-year service life. June 30 Purchased a patent for $53,000 from a third-party marketing company related to the packaging of the company's products. The patent has a 20-year useful life, after which it is expected to have no value. October 1 Sold equipment for $44,500. The equipment cost $73,700 and had accumulated depreciation of $50,400 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is $9,800. (Hint: Total accumulated depreciation equals 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 major components at a cost of $67,100. These improvements are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2-capitalization of new cost.]