**SHOULD BE "19" JOURNAL ENTRIES TOTAL**

On January 1, 2021, the general ledger of Parts Unlimited includes the following account balances:

Accounts	Debit			Credit
Cash	$	171,400
Accounts Receivable		21,400
Inventory		46,800
Land		349,000
Equipment		366,500
Accumulated depreciation				$	181,000
Accounts Payable					23,800
Common stock					529,000
Retained Earnings					221,300
Totals	$	955,100		$	955,100

From January 1 to December 31, the following summary transactions occurred:

1. Purchased inventory on account, $334,800. Record the purchase of inventory on account, $334,800.
2. Sold inventory on account, $601,200. Record the sale of inventory on account, $601,200.
3. The inventory cost $351,600. Record the cost of inventory sold, $351,600.
4. Received cash from customers on account, $567,700. Record the cash received from customers on account, $567,700.
5. Paid cash on account, $337,500. Record the cash paid on account, $337,500.
6. Paid cash for salaries, $103,700, and for utilities, $61,700. Record the cash paid for salaries, $103,700, and for utilities, $61,700.

In addition, Parts Unlimited had the following transactions during the year:

April		1		Record Purchased equipment for $104,000 using a note payable, due in 12 months plus 8% interest. The company also paid cash of $4,100 for freight and $4,700 for installation and testing of the equipment. The equipment has an estimated residual value of $17,800 and a ten-year service life.
June		30		Record Purchased a patent for $49,000 from a third-party marketing company related to the packaging of the companys products. The patent has a 20-year useful life, after which it is expected to have no value.
October		1		Record Sell of equipment for $40,100. The equipment cost $69,700 and had accumulated depreciation of $46,400 at the beginning of the year. Additional depreciation for 2021 up to the point of the sale is $9,400. (Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.)
November		15		Several older pieces of equipment were improved by replacing major components at a cost of $63,100. These improvements are expected to enhance the equipments operating capabilities. [Record this transaction using Alternative 2capitalization of new cost.]

Year-end adjusting entries:

1. Record Depreciation on the equipment purchased on April 1, 2021, was calculated using the straight-line method.
2. Record Depreciation on the remaining equipment, $30,500.
3. Record Amortization of the patent purchased on June 30, 2021, using the straight-line method.
4. Record Accrued interest payable on the note payable.
5. Record Equipment with an original cost of $75,300 had the following related information at the end of the year: accumulated depreciation of $49,300, expected cash flows of $16,600, and a fair value of $15,300.
6. Record Accrued income taxes at the end of the year are $21,600.
7. Record the closing entry for revenue.
8. Record the closing entry for expenses.

Prepare a multiple-step income statement for the period ended December 31, 2021. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.

Prepare a classified balance sheet as of December 31, 2021. Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection.