Exercise 7-21 The beginning trial balance has been entered in the general ledger for you. The amounts in this exercise have been changed from those in the text to help ensure that you are truly going through the process and not using an online tool for help. The company had the following activity: January 1 Purchase equipment for $18,500. The company estimates a residual value of $500 and a five-year service life. January 4 Pay cash on accounts Payable, $11,500. January 8 Purchase additional inventory on account, $112,900. January 15 Receive cash on accounts receivable, $19,500. January 19 Pay cash for salaries, $24,600. January 28 Pay cash for January utilities, $12,750. January 30 Firework sales for January total $225,200. All of these sales are on account. The cost of the units sold is $128,000. Required 1 Record each of the transactions listed in the general journal and post to the general ledger. 2 Record adjusting entries on January 31 in the general journal and post to the general ledger. A worksheet has been provided to help you organize your work. This is not required but bonus points will be awarded for completing the worksheet. 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 $6,300 for estimated future uncollectible accounts. c. The company has accrued interest on notes receivable for January (5% note with a $18,000 balance--See the general ledger.) d. Unpaid salaries owed to employees at the end of January are $18,200. e. The company accrued income taxes at the end of January of $5,200. 3 Prepare an adjusted trial balance as of January 31, 2024. The worksheet provided satisfies this requirement. 4 Prepare a multi-step income statement for the period ended January 31, 2024. 5 Prepare a statement of stockholders equity for the period ended January 31, 2024. 6 Prepare a classified balance sheet as of January 31, 2024. 7 Record the closing entries on January 31 in the general journal and post to the general ledger.

Need requirements 2 (not including bonus questions), and requirements 3-7