life. January 1 Purchase equipment for $21,500. The company estimates a residual value of $3,500 and a five-year service January 4 Pay cash on accounts payable, $11,500. January 8 Purchase additional inventory on account, $102,900. January 15 Receive cash on accounts receivable, $24,000. January 19 Pay cash for salaries, $31,800. January 28 Pay cash for January utilities, $18,500. January 30 Sales for January total $240,000. All of these sales are on account. The cost of the units sold is $125,000. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $36,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts. c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $34,600. e. Accrued income taxes at the end of January are $11,000. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 8) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 9-13). 3. Review the adjusted Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 14 and 15). 7. Using the information from the requirements above, complete the 'Analysis' tab. life. January 1 Purchase equipment for $21,500. The company estimates a residual value of $3,500 and a five-year service January 4 Pay cash on accounts payable, $11,500. January 8 Purchase additional inventory on account, $102,900. January 15 Receive cash on accounts receivable, $24,000. January 19 Pay cash for salaries, $31,800. January 28 Pay cash for January utilities, $18,500. January 30 Sales for January total $240,000. All of these sales are on account. The cost of the units sold is $125,000. The following information is available on January 31, 2021. a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. At the end of January, $5,000 of accounts receivable are past due, and the company estimates that 50% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 2% will not be collected. The note receivable of $36,000 is considered fully collectible and therefore is not included in the estimate of uncollectible accounts. c. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $34,600. e. Accrued income taxes at the end of January are $11,000. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 8) assuming a FIFO perpetual inventory system. The transaction on January 30 requires two entries: one to record sales revenue and one to record cost of goods sold. Review the 'General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on January 31 in the 'General Journal' tab (these are shown as items 9-13). 3. Review the adjusted Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 14 and 15). 7. Using the information from the requirements above, complete the 'Analysis' tab
