Exercise 7-21 (Algo) Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) (GL) On January 1, 2024, the general ledger of TNT Fireworks includes the following account balances: During January 2024, the following transactions occur: January 1 Purchane equipment for $20,500. The conpany entinates a renidual value of $2,500 and a six-year llervice 1 fee. January. 4 pay canh on accounts payable, $10,500. January Burchase additional inventory on aceount, 592,900 . January 15 Receive cash on account receivable, 523,000 . January 19 pay cash for salaries, $30,800. January 28 Pay cash for January uti.ities, $17,500. January 30 Firework salen for Januky total $230,000. All of these nales are on account, The cost of the unita notd ta 5120,000 . The following information is avallable on January 31, 2024. ine iollowing intormaton is avallabie on January S1,U4. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company records an adjusting entry for $3,400 for estimated future uncollectible accounts. c. The company has accrued interest on notes receivable for January. d. Unpaid salaries owed to employees at the end of January are $33,600. e. The company accrued income taxes at the end of January $10,000. Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal account field.) Journal entry worksheet Purchase equipment for $20,500. he company estimates a residual value of $2,500 and a six-year service life. Note: Enter debits before credits. Journal entry worksheet Purchase equipment for $20,500. The company estimates a residual value of $2,500 and a six-year service life. Note: Enter debits before credits. Pay cash on accounts payable, $10,500. Note: Enter debits before credits. Journal entry worksheet 1 456 Purchase additional inventory on account, $92,900. Nanta: Enter debits before credits. Receive cash on accounts receivable, $23,000 Note: Enter debits before credits. Journal entry worksheet 123 Note: Enter debits before credits. Pay cash for January utilities, $17,500. Note: Enter debits before credits. Journal entry worksheet Firework sales for January total $230,000. All of these sales are on account. Note: Enter debits before credits. Journal entry worksheet Firework sales for January total $230,000. The cost of the units sold is $120,000. Record the cost of the units sold. Note: Enter debits before credits. Journal entry worksheet Depreciation on the equipment for the month of January is calculated using the straight-line method. Record the adjusting entry for depreciation. Note: Enter debits before credits. Journal entry worksheet