Exercise 7-21B Complete the accounting cycle using long-term asset transactions (L07-4, [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 $ 58,900 25,400 $ 2,400 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (5%, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 36,500 14,400 157,000 15,000 222,000 52,800 $292,200 $ 292, 200 During January Year 1, the following transactions occur: January 1 Purchase equipment for $19,700. The company estimates a residual value of $1,700 and a five-year service life. January 4 Pay cash on accounts payable, $9,700. January 8 Purchase additional inventory on account, $ 84,900. January 15 Receive cash on accounts receivable, $22,200. January 19 Pay cash for salaries, $30,000. January 28 Pay cash for January utilities, $16,700. January 30 Sales for January total $222,000. All of these sales are on account. The cost of the units sold is January 30 Sales for January total $222,000. All of these sales are on account. The cost of the units sold is $116,000. 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 $3,200 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 $32,800. e. Accrued income taxes at the end of January are $9,200. xercise 7-21B Part 3 Prepare an adjusted trial balance as of January 31, Year 1