On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Cash Debit $ 59,900 Credit Accounts Receivable 27,400 Allowance for Uncollectible Accounts $ 3,400 Inventory 37,500 Notes Receivable (5%, due in 2 years) 26,400 Land 167,000 Accounts Payable Common Stock 16,000 232,000 Retained Earnings 66,800 Totals $318,200 $318,200 During January Year 1, the following transactions occur: January 1 Purchase equipment for $20,700. The company estimates a residual value of $2,700 and a six-year service life. January 4 Pay cash on accounts payable, $10,700. January 8 Purchase additional inventory on account, $94,900. January 15 Receive cash on accounts receivable, $23,200. January 19 Pay cash for salaries, $31,000. January 28 Pay cash for January utilities, $17,700. January 30 Sales for January total $232,000. All of these sales are on account. The cost of the units sold is $121,000. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $4,200 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.) c. Accrued interest revenue on notes receivable for January January Si are past uue, an accounts are CAMBIE W De unicorectione, me 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.) c. Accrued interest revenue on notes receivable for January. d. Unpald salaries at the end of January are $33,800. e. Accrued income taxes at the end of January are $10,200. 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a minus sign.) Cash Inventory Assets Balance Sheet January 31, Year 1 $ 59,900 Accounts Payable 37,500) Liabilities $ 16,000 Total Current Liabilities 16,000 Total Current Assets 97,400 Stockholder's Equity Common Stock Retained Earnings Total Stockholders' Equity Total Assets $ 97,400 Total Liabilities and Stockholders' Equity $ 16,000 0