On January 1, Year 1, the general ledger of a company includes the following account balances:

Accounts	Debit				Credit
Cash	$	59,400
Accounts Receivable		26,400
Allowance for Uncollectible Accounts					$	2,900
Inventory		37,000
Notes Receivable (5%, due in 2 years)		20,400
Land		162,000
Accounts Payable						15,500
Common Stock						227,000
Retained Earnings						59,800
Totals	$	305,200			$	305,200

During January Year 1, the following transactions occur:

January		1		Purchase equipment for $20,200. The company estimates a residual value of $2,200 and a six-year service life.
January		4		Pay cash on accounts payable, $10,200.
January		8		Purchase additional inventory on account, $89,900.
January		15		Receive cash on accounts receivable, $22,700.
January		19		Pay cash for salaries, $30,500.
January		28		Pay cash for January utilities, $17,200.
January		30		Sales for January total $227,000. All of these sales are on account. The cost of the units sold is $118,500.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $3,700 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.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $33,300.
5. Accrued income taxes at the end of January are $9,700.

rev: 11_22_2018_QC_CS-148298, 06_13_2019_QC_CS-170

January 1 Purchase equipment for $20,200. The company estimates a residual value of $2,200 and a six-year service life. January 4 Pay cash on accounts payable, $10,200. January 8 Purchase additional inventory on account, $89,900. January 15 Receive cash on accounts receivable, $22,700. January 19 Pay cash for salaries, $30,500. January 28 Pay cash for January utilities, $17,200. January 30 Sales for January total $227,000. All of these sales are on account. The cost of the units sold is $118,500.

Adjusted Trial Balance
January 31, Year 1
Accounts	Debit	Credit
Cashselected answer correct	not attempted	not attempted
Accounts Receivableselected answer correct	not attempted	not attempted
Allowance for Uncollectible Accountsselected answer correct	not attempted	not attempted
Note Receivableselected answer correct	not attempted	not attempted
Inventoryselected answer correct	not attempted	not attempted
Landselected answer correct	not attempted	not attempted
Accounts Payableselected answer correct	not attempted	not attempted
Common Stockselected answer correct	not attempted	not attempted
Retained Earningsselected answer correct	not attempted	not attempted
Sales Revenueselected answer correct	not attempted	not attempted
Cost of Goods Soldselected answer correct	not attempted	not attempted
Salaries Expenseselected answer correct	not attempted	not attempted
Utilities Expenseselected answer correct	not attempted	not attempted
Interest Revenueselected answer correct	not attempted	not attempted
Equipmentselected answer correct	not attempted	not attempted
Interest Receivableselected answer correct	not attempted	not attempted
Accumulated Depreciationselected answer correct	not attempted	not attempted
Salaries Payableselected answer correct	not attempted	not attempted
Income Tax Payableselected answer correct	not attempted	not attempted
Depreciation Expenseselected answer correct	not attempted	not attempted
Bad Debt Expenseselected answer correct	not attempted	not attempted
Income Tax Expenseselected answer correct	not attempted	not attempted
Totals