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: Recounta Debit Credit Cash $ 59,100 Accounts Receivable 25,800 Allowance for Uncollectible Accounts $ 2,600 Inventory 36,700 Notes Receivable (51, due in 2 years) 16,800 Land 159,000 Accounts Payable 15,200 Common Stock 224,000 Retained Earninga 55,600 Totals $297,400 $ 297.400 During January 2021, the following transactions occur January 1 Purchase equipment for $19,900. The company estimates residual value of $1,900 and a five-year service life. January 4 Pay cash on accounts payable, $9,900. January 8 Purchase additional inventory on account, $86,900. January 15 Receive cash on accounts receivable, $22,400. January 19 Tay cash for salaries, 530,200. January 28 Pay cash for January utilities, $16,900. January 30 Sales for January total $224,000. All of these sales are on account. The cost of the units sold is $117,000. 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 $3,400 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 d. Unpaid salaries at the end of January are $33.000. e. Accrued income taxes at the end of January are $9.400. Exercise 7-21 Part 6 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Require account field.) View transaction list Journal entry worksheet 1 2 > Record the closing entry for revenues. Note: Enter debits before credits. General Journal Debit Credit Date January 31 2021 Record entry Clear entry View general Journal Exercise 7-21 Part 6 6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in th account field.) View transaction fist Journal entry worksheet