Saved You skipped this question in the previous attempt 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 $ 58,700 25,000 $ 2,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounta Inventory Notes Receivable (5, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totala 36,300 12,000 155,000 14,800 220,000 50,000 $287.000 $287,000 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,500. The company estimates a residual value of $2,500 and a five-year service life. January 4 Pay cash on accounts payable, $9,500. January 8 Purchase additional inventory on account, $82,900. January 15 Receive cash on accounts receivable, $22,000. January 19 Pay cash for salaries, $29,800. January 28 Pay cash for January utilities, $16,500. January 30 Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold in $115,000. 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 $3,000 of accounts receivable o January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts han innan. nandinn 101 of the ann nennt en annan heineat in time Saved You skipped this question in the previous attempt 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 $ 58,700 25,000 $ 2,200 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounta Inventory Notes Receivable (5, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totala 36,300 12,000 155,000 14,800 220,000 50,000 $287.000 $287,000 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,500. The company estimates a residual value of $2,500 and a five-year service life. January 4 Pay cash on accounts payable, $9,500. January 8 Purchase additional inventory on account, $82,900. January 15 Receive cash on accounts receivable, $22,000. January 19 Pay cash for salaries, $29,800. January 28 Pay cash for January utilities, $16,500. January 30 Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold in $115,000. 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 $3,000 of accounts receivable o January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts han innan. nandinn 101 of the ann nennt en annan heineat in time
