Required information Exercise 7-21 Complete the accounting cycle using long-term asset transactions (L07-4.7-7) The following information applies to the questions displayed below) On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Credit Debit $ 59,600 26,800 $ 3,100 Account Cash Accounts Receivable Allowance for Uncollectible Accounts Toventory Notes Receivable (5), due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 37,200 22,800 164,000 15,700 229,000 62,600 $310, 400 $310,400 During January 2021, the following transactions occur January 1 Purchase equipment for $20,400. The company estimates residual value of $2,400 and a four-year service life. January 4 Pay cash on accounts payable, $10,400. January 8 Purchase additional inventory on account, $91,900. January 15 Receive cash on accounts receivable, $22.900. January 19 Pay cash for salaries, $30,700. January 28 Pay cash for January utilities, $17.400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold Is $119,500. 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 $3,900 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 post due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledget) C. Accrued interest revenue on notes receivable for January d. Unpaid salaries at the end of January are $33,500. e. Accrued income taxes at the end of January are $9,900 Junty is required for a particular transaction/event, select Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Purchase equipment for $20,400, cash. The company estimates a residual value of $2,400 and a four-year service life. Note: Enter debits before credits General Journal Debit Credit Date January 01 Record entry Clear entry View general Journal Exercise 7-21 Part 3 3. Prepare an adjusted trial balance as of January 31, 2021. TNT FIREWORKS Adjusted Trial Balance January 31, 2021 Accounts Debit Credit 0 Totals $ Exercise 7-21 Part 4 4. Prepare a multiple-step income statement for the period ended January 31, 2021. TNT FIREWORKS Multiple-Step Income Statement For the month ended January 31, 2021 $ 0 Expenses Total Operating Expenses 0 0 0 $ 0