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 Debit $ 60,100 27,800 $ 3,600 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (54, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totalo 37,700 28,800 169,000 16,200 234,000 62.500 $323,400 $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, 031,200. 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 cold 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 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 $34,000. e. Accrued income taxes at the end of January are $10,400. Exercise 7-21B Part 7 7. Analyze how well the company manages its assets: Requirement 1: 2-1. Calculate the return on assets ratio for the month of January Ratum on Assets Ratio Choose Numerator Choose Denominator Retum on Assos Ratlo Exercise 7-21B Part 7 7. Analyze how well the company manages its assets: Requirement 1: a-1. Calculate the return on assets ratio for the month of January Return on Assets Ratio Choose Denominator Choose Numerator Return on Assets Ratio Return on assets