Required information Exercise 7 21B Complete the accounting cycle using long term asset transactions (LO7 4, 7 7) Skip to question The following information applies to the questions displayed below On January 1, Year 1, the general ledger of a company includes the following account balances Accounts Debit Credit Cash $ 60,500 Accounts Receivable 28,600 Allowance for Uncollectible Accounts $ 4,000 Inventory 38,100 Notes Receivable (5 , due in 2 years) 33,600 Land 173,000 Accounts Payable 16,600 Common Stock 238,000 Retained Earnings 75,200 Totals $ 333,800 $ 333,800 During January Year 1, the following transactions occur January 1 Purchase equipment for $21,300 The company estimates a residual value of $3,300 and a six year service life January 4 Pay cash on accounts payable, $11,300 January 8 Purchase additional inventory on account, $100,900 January 15 Receive cash on accounts receivable, $23,800 January 19 Pay cash for salaries, $31,600 January 28 Pay cash for January utilities, $18,300 January 30 Sales for January total $238,000 All of these sales are on account The cost of the units sold is $124,000 Information for adjusting entries Depreciation on the equipment for the month of January is calculated using the straight line method The company estimates future uncollectible accounts The company determines $4,800 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 ) Accrued interest revenue on notes receivable for January Unpaid salaries at the end of January are $34,400 Accrued income taxes at the end of January are $10,800 rev 11 22 2018 QC CS 148298, 06 13 2019 QC CS 170054 Exercise 7 21B Part 6 6 Record closing entries (If no entry is required for a particular transaction event, select No Journal Entry Required in the first account field )

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Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) Skip to question [The following information applies to the questions displayed

Required information

Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7)

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[The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances:

Accounts	Debit		Credit
Cash	$	60,500
Accounts Receivable		28,600
Allowance for Uncollectible Accounts			$	4,000
Inventory		38,100
Notes Receivable (5%, due in 2 years)		33,600
Land		173,000
Accounts Payable				16,600
Common Stock				238,000
Retained Earnings				75,200
Totals	$	333,800	$	333,800

During January Year 1, the following transactions occur:

January	1	Purchase equipment for $21,300. The company estimates a residual value of $3,300 and a six-year service life.
January	4	Pay cash on accounts payable, $11,300.
January	8	Purchase additional inventory on account, $100,900.
January	15	Receive cash on accounts receivable, $23,800.
January	19	Pay cash for salaries, $31,600.
January	28	Pay cash for January utilities, $18,300.
January	30	Sales for January total $238,000. All of these sales are on account. The cost of the units sold is $124,000.

Information for adjusting entries:

Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company estimates future uncollectible accounts. The company determines $4,800 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.)
Accrued interest revenue on notes receivable for January.
Unpaid salaries at the end of January are $34,400.
Accrued income taxes at the end of January are $10,800.

rev: 11_22_2018_QC_CS-148298, 06_13_2019_QC_CS-170054

Exercise 7-21B Part 6

6. Record closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)