Exercise 7 21B Complete the accounting cycle using long term asset transactions (LO7 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 Accounts Debit Credit Cash $ 59,800 Accounts Receivable 27,200 Allowance for Uncollectible Accounts $ 3,300 Inventory 37,400 Notes Receivable (5 , due in 2 years) 25,200 Land 166,000 Accounts Payable 15,900 Common Stock 231,000 Retained Earnings 65,400 Totals $ 315,600 $ 315,600 During January Year 1, the following transactions occur January 1 Purchase equipment for $20,600 The company estimates a residual value of $2,600 and a five year service life January 4 Pay cash on accounts payable, $10,600 January 8 Purchase additional inventory on account, $93,900 January 15 Receive cash on accounts receivable, $23,100 January 19 Pay cash for salaries, $30,900 January 28 Pay cash for January utilities, $17,600 January 30 Sales for January total $231,000 All of these sales are on account The cost of the units sold is $120,500 Information for adjusting entries Depreciation on the equipment for the month of January is calculated using the straight line method The company estimates future uncollectible accounts The company determines $4,100 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 ) Accrued interest revenue on notes receivable for January Unpaid salaries at the end of January are $33,700 Accrued income taxes at the end of January are $10,100 rev 11 22 2018 QC CS 148298, 06 13 2019 QC CS 170054 Exercise 7 21B Part 5 5 Prepare a classified balance sheet as of January 31, Year 1 (Deductible amounts should be indicated with a minus sign ) 6 Record closing entries

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Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following information applies to the questions displayed below.] On January 1, Year

Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 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:

Accounts	Debit		Credit
Cash	$	59,800
Accounts Receivable		27,200
Allowance for Uncollectible Accounts			$	3,300
Inventory		37,400
Notes Receivable (5%, due in 2 years)		25,200
Land		166,000
Accounts Payable				15,900
Common Stock				231,000
Retained Earnings				65,400
Totals	$	315,600	$	315,600

During January Year 1, the following transactions occur:

January	1	Purchase equipment for $20,600. The company estimates a residual value of $2,600 and a five-year service life.
January	4	Pay cash on accounts payable, $10,600.
January	8	Purchase additional inventory on account, $93,900.
January	15	Receive cash on accounts receivable, $23,100.
January	19	Pay cash for salaries, $30,900.
January	28	Pay cash for January utilities, $17,600.
January	30	Sales for January total $231,000. All of these sales are on account. The cost of the units sold is $120,500.

Information for adjusting entries:

Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company estimates future uncollectible accounts. The company determines $4,100 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.)
Accrued interest revenue on notes receivable for January.
Unpaid salaries at the end of January are $33,700.
Accrued income taxes at the end of January are $10,100.

rev: 11_22_2018_QC_CS-148298, 06_13_2019_QC_CS-170054

Exercise 7-21B Part 5

5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a minus sign.)

6. Record closing entries