On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Credit Accounts Cash Accounts Receivable Inventory Land Buildings Allowance for Uncollectible Accounts Accumulated Depreciation Accounts Payable Common Stock Retained Earnings Totals Debit $ 11,600 34,800 152,400 71,300 124,000 $ 2,200 10,000 22,100 204,000 155,800 $394,100 $394,100 During January 2021, the following transactions occur: January 1 Borrow $104,000 from Captive Credit Corporation. The installment note bears interest at 6% annually and matures in 5 years. Payments of $2,011 are required at the end of each month for 60 months. January 4 Receive $31,400 from customers on accounts receivable. January 10 Pay cash on accounts payable, $15,000. January 15 Pay cash for salaries, $29, 300. January 30 Firework sales for the month total $195,800. Sales include $65,400 for cash and $130,400 on account. The cost of the units sold is $114,500. January 31 Pay the first monthly installment of $2,011 related to the $104,000 borrowed on January 1. Round your interest calculation to the nearest dollar. The following information is available on January 31, 2021. a. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $24,400. b. The company estimates future uncollectible accounts. The company determines $3,400 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance b. The company estimates future uncollectible accounts. The company determines $3,400 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 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Unpaid salaries at the end of January are $26,500. d. Accrued income taxes at the end of January are $8,400. e. $18,479 of the long-term note payable balance will be paid over the next year. % Answer is not complete. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. No 1 Date Jan 01 Credit Account Title Cash Notes Payable (Long-term) Debit 104,000 104,000 Jan 04 31,400 Cash Accounts receivable 31,400 Jan 10 15,000 Accounts payable Cash 15,000 Jan 15 29,300 Salaries expense Cash 29,300 Jan 30 Cash | vasil vasn 10,00U Jan 15 29,300 Salaries expense Cash 29,300 5 Jan 30 Cash Accounts receivable Sales revenue 65,400 130,400 195,800 6 Jan 30 114,500 Cost of goods sold Inventory 114,500 mu 7 Jan 31 Notes Payable (Long-term) Interest expense Cash hany 104,000 520 2,011 8 Jan 31 830 Depreciation expense Accumulated depreciation sciation o 830 9 Jan 31 3,412 Bad debt expense Allowance for uncollectible accounts f 3,412 X Requirement General Ledger > View transaction list Journal entry worksheet 0 Unpaid salaries at the end of January are $26,500. Prepare the adjusting entry for salaries. / / / Note: Enter debits before credits. Note Date Account Title D ebit Credit / / / / / / Jan 31 / / / / / / / / / / / / . / 17 / / Record entry Clear entry View general journal mmm Record the reclassification of $18,479 from long-term notes payable to current notes payable. Note: Enter debits before credits Date Account Title Debit Credit / / Jan 31 / N 02 / VA VAN / NAS Record entry Clear entry View general journal General Ledger > 13 V 2 7 Prepare the closing entry for exp / Note: Enter debits before credits Date Account Title Debit Credit / / / / / X Jan 31 / / / / / / TRAN A Record entry Clear entry View general journal