Sunland Company's balance sheet at December 31, 2021, is presented below. SUNLAND COMPANY Balance Sheet December 31, 2021 Cash $36.000 Accounts Payable $16,500 Inventory 36,900 Interest Payable 300 Prepaid Insurance 7,200 Notes Payable 60,000 Equipment 45,600 Owner's Capital 48,900 $125,700 $125,700 During January 2022, the following transactions occurred. (Sunland Company uses the perpetual inventory system.) 1. Sunland paid $300 interest on the note payable on January 1, 2022. The note is due December 31, 2023. 2. Sunland purchased $313,320 of inventory on account. 3. Sunland sold for $528,000 cash, inventory which cost $318,000. Sunland also collected $34,320 in sales taxes. 4. Sunland paid $276,000 in accounts payable. 5. Sunland paid $20,400 in sales taxes to the state. 6. Paid other operating expenses of $36,000. 7. On January 31, 2022, the payroll for the month consists of salaries and wages of $88,000. All salaries and wages are subject to 7.65% FICA taxes. A total of $10,720 federal income taxes are withheld. The salaries and wages are paid on February 1. Adjustment data: 8. Interest expense of $300 has been incurred in January on the notes payable. 9. The insurance for the year 2022 was prepaid on December 31, 2021. 10. The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $2,400 salvage value. 11. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.6% federal unemployment tax. (a) Prepare journal entries for the transactions listed above and the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, eg. 5,275.) No. Account Titles and Explanation Debit Credit 1. (To record sales revenue.) (To record cost of goods sold.) 2. 3. 4. 5. 6. 7. B. 9. 10. 11. eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (b) Prepare an adjusted trial balance at January 31, 2022. (Round answers to O decimal places, eg. 5,275.) SUNLAND COMPANY Trial Balance $ Total eTextbook and Media List of Accounts Save for Later $ Debit Credit Attempts: 0 of 5 used Submit Answer (c1) Prepare an income statement for the month ending January 31, 2022. (Round answers to O decimal places, eg. 5,275.) SUNLAND COMPANY Income Statement $ $ > 11 $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (c2) Prepare an owner's equity statement for the month ending January 31, 2022. (Round answers to 0 decimal places, e.g. 5,275.) SUNLAND COMPANY Owner's Equity Statement $ $ eTextbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (C3) Prepare a classified balance sheet as of January 31, 2022. (List current assets in order of liquidity. Round answers to O decimal places, eg 5,275) SUNLAND COMPANY Balance Sheet Assets