Exercise 7-21 Part 5 5. Prepare a classified balance sheet as of January 31, 2021. (Deductible amounts should be indicated with a minus sign $ 92,200 Answer is not complete. TNT FIREWORKS Balance Sheet January 31, 2021 Liabilities $ 4,600 Accounts Payable 227,400 Salaries Payable x (8,420) Income Tax Payable 6,600 70 6,600 Total Current Liabilities 236,850 Stockholder's Equity 159,000 Common Stock 19,900 Retained Earnings (300) Assets Cash Accounts Receivable Add: Accumulated Depreciation Inventory Interest Receivable Inventory Total Current Assets Land Equipment Dividends 33,000 9,400 134,600 224,000 55,600 Total Assets Total Stockholders' Equity Total Liabilities and Stockholders' Equity 279,600 $ 414,200 415.450 Credit Debit $ 59,100 25,800 $ 2,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (50, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,700 16.800 159.000 15,200 224,000 55,600 $297.400 $297.400 During January 2021, the following transactions occur. January 1 Purchase equipment for $19,900. The company estimates a residual value of $1,900 and a five-year service life. January 4 Pay cash on accounts payable, $9.900. January 8 Purchase additional inventory on account, 586,900. January 15 Receive cash on accounts receivable, $22,400. January 19 Pay cash for salaries, $30,200. January 28 Pay cash for January utilities, $16,900. January 30 Sales for January total $224,000. All of these sales are on account. The cost of the units sold is $117.000. 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 $3,400 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 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 $33,000 e. Accrued income taxes at the end of January are $9.400