On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances: From January 1 to December 31 , the following summary transactions occurred: a. Purchased inventory on account, $328,800. b. Sold inventory on account, $577,200. The inventory cost $345,600. c. Received cash from customers on account, $561,700. d. Paid cash on account, $331,500. e. Paid cash for salaries, $97,700, and for utilities, $55,700. In addition, Parts Unlimited had the following transactions during the year: April 1 Purchased equipment for $98,000 using a note payable, due in 12 months plus 6% interest. The company also paid cash of $3,500 for freight and $4,100 for installation and testing of the equipment. The equipment has an estimated residual value of $13,600 and a ten-year service life. June 30 Purchased a patent for $43,000 from a third-party marketing company related to the packaging of the company's products. The patent has a 20-year useful life, after which it is expected to have no value. October 1 Sold equipment for $33,500. The equipment cost $63,700 and had accumulated depreciation of $40,400 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is $8,800. (Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.) November 15 Several older pieces of equipment were improved by replacing major components at a cost of $57,100. These improvements are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2capitalization of new cost.] Year-end adjusting entries: a. Depreciation on the equipment purchased on April 1, 2021, calculated using the straight-line method. b. Depreciation on the remaining equipment, $24,500. c. Amortization of the patent purchased on June 30, 2021, using the straight-line method. d. Accrued interest payable on the note payable. e. Equipment with an original cost of $68,700 had the following related information at the end of the year: accumulated depreciation of $43,300, expected cash flows of $16,000, and a fair value of $12,300. f. Accrued income taxes at the end of the year are $15,600. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) Using the information from the requirements above, complete the 'Analysis'. (Round "fixed asset turnover ratio" answer to 2 places.) On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances: From January 1 to December 31 , the following summary transactions occurred: a. Purchased inventory on account, $328,800. b. Sold inventory on account, $577,200. The inventory cost $345,600. c. Received cash from customers on account, $561,700. d. Paid cash on account, $331,500. e. Paid cash for salaries, $97,700, and for utilities, $55,700. In addition, Parts Unlimited had the following transactions during the year: April 1 Purchased equipment for $98,000 using a note payable, due in 12 months plus 6% interest. The company also paid cash of $3,500 for freight and $4,100 for installation and testing of the equipment. The equipment has an estimated residual value of $13,600 and a ten-year service life. June 30 Purchased a patent for $43,000 from a third-party marketing company related to the packaging of the company's products. The patent has a 20-year useful life, after which it is expected to have no value. October 1 Sold equipment for $33,500. The equipment cost $63,700 and had accumulated depreciation of $40,400 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is $8,800. (Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.) November 15 Several older pieces of equipment were improved by replacing major components at a cost of $57,100. These improvements are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2capitalization of new cost.] Year-end adjusting entries: a. Depreciation on the equipment purchased on April 1, 2021, calculated using the straight-line method. b. Depreciation on the remaining equipment, $24,500. c. Amortization of the patent purchased on June 30, 2021, using the straight-line method. d. Accrued interest payable on the note payable. e. Equipment with an original cost of $68,700 had the following related information at the end of the year: accumulated depreciation of $43,300, expected cash flows of $16,000, and a fair value of $12,300. f. Accrued income taxes at the end of the year are $15,600. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) Using the information from the requirements above, complete the 'Analysis'. (Round "fixed asset turnover ratio" answer to 2 places.)