Exercise 7-21 Complete the accounting cycle using long-term asset transactions (L07-4.7-7) The following information applies to the questions displayed below.) On January 1, 2021. the general ledger of TNT Fireworks Includes the following account balances: 7 Credit Debit $ 59, 600 26.800 $ 3,100 Account Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (54, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37.200 22,800 164,000 15.700 229,000 62,600 $310,400 5310,400 During January 2021, the following transactions occur January 1 Purchase equipment for $20.400. The company estimates a residual value of 52,400 and a four-year service life. January 4 Pay cash on accounts payable, 510,400. January 8 Purchase additional inventory on account, 591,900. January 15 Receive cash on accounts receivable, $22,900. January 19 Pay cash for salaries, $30,700. January 28 Pay cash for January utilities, $17,400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold is $119,500. 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 $3,900 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 post due, and 3% 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 $33,500. e. Accrued income taxes at the end of January are $9,900. View transaction list Journal entry worksheet