Exercise 7-21B 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, Year 1, the general ledger of a company includes the following account balances: Credit Dobit $ 60,100 27,800 $3,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5), duo in 2 years) Land Accounts Payable Common Stock Retained Earnings Total 37,700 28,800 169,000 16,200 234,000 69,600 3323,400 $323, 400 During January Year 1, the following transactions occur January 1 Purchase equipment for $20,900. The company estimates a residual value of $2,900 and a four- year service life. January 4 Pay cash on accounts payable, $10,900. January 8 Purchase additional inventory on account. $96,900.- January 15 Receive cash on accounts receivable, $23,400. January 19 Pay cash for salaries, $31,200. January 28 Pay cash for January utilities, $17,900. January 30 Soteo for January total $234,000. All of these bales are on account. The cost of the units sold 1 NA January 19 Pay cash for salaries, $31,200. January 28 Pay cash for January utilities, $17,900. January 30 Sales for January total $234,000. All of these sales are on account. The cost of the units sold is $122,000. 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 $4,400 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 $34,000. e. Accrued income taxes at the end of January are $10,400. Exercise 7-21B Part 6 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction lit Journal entry worksheet View transaction list Journal entry worksheet Record the closing entry for revenues, Note: Enter debits before credits. Date General Journal Debit Credit January 31 Record entry Clear entry View general journal