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 (5t, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,700 28,800 169,000 16,200 234,000 69,600 $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 lito. January 4 Pay cash on accounts payable, $10.900. January 8 Purchase additional inventory on account, 596,900. 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 Sales for January total $234,000. All of these sales are on account. The cost of the units sold AAN 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 4 4. Prepare a multiple-step income statement for the period ended January 31, Year 1 Multiple-Stop Income Statement For the month ended January 31, Year 1 Exercise 7-21B Part 4 4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-Step Income Statement For the month ended January 31, Year 1 Expenses Total Operating Expenses 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 (5t, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,700 28,800 169,000 16,200 234,000 69,600 $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 lito. January 4 Pay cash on accounts payable, $10.900. January 8 Purchase additional inventory on account, 596,900. 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 Sales for January total $234,000. All of these sales are on account. The cost of the units sold AAN 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 4 4. Prepare a multiple-step income statement for the period ended January 31, Year 1 Multiple-Stop Income Statement For the month ended January 31, Year 1 Exercise 7-21B Part 4 4. Prepare a multiple-step income statement for the period ended January 31, Year 1. Multiple-Step Income Statement For the month ended January 31, Year 1 Expenses Total Operating Expenses