On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances: Credit Accounts Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation Accounts Payable Common stock Retained Earnings Totals Debit $164,400 14,400 39,800 342. eee 349,500 $ 174,000 16,800 522,000 197,300 $ 910, 109 $ 910,100 From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account. $327,800. Sold inventory on account. $573,200. The inventory cost $344,600. c. Received cash from customers on account, $560,700. d. Paid cash on account. $330.500. e. Paid cash for salaries, $96.700, and for utilities. $54,700. In addition, Parts Unlimited had the following transactions during the year: alue of a patent for $42seful life, aftercost $62,78e and of the sale in the current years, 108. Th April 1 Purchased equipment for $97,898 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $3,400 for freight and $4, eee for installation and testing of the equipment. The equipment has an estimated residual value of $12,000 and a ten-year service life. June 30 Purchased a patent for $42,8ee from a third-party marketing company related to the packaging of the company's products. The patent has a 29-year useful life, after which it is expected to have no value. October 1 Sold equipment for $32,480. The equipment cost $62,780 and had accumulated depreciation of $39,480 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is $8,709. (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 $56, 100. These improvements are expected to enhance the equipment's operating capabilities. [Record this transaction using Alternative 2- capitalization 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. $23.500. 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 $67.600 had the following related information at the end of the year. accumulated depreciation of $41,900, expected cash flows of $17,700, and a fair value of $11.800. f. Accrued income taxes at the end of the year are $14.600. 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 1-11) assuming a perpetual FIFO inventory system. 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 December 31 in the 'General Journal' tab (these are shown as items 12-17). 3. Review the adjusted 'Trial Balance' as of December 31, 2021, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2021, in the 'Balance Sheet' tab. 6. Record closing entries in the 'General Journal' tab (these are shown as items 18-19). 7. Using the information from the requirements above, complete the 'Analysis' tab.
