[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	$	60,400
Accounts Receivable		28,400
Allowance for Uncollectible Accounts					$	3,900
Inventory		38,000
Notes Receivable (5%, due in 2 years)		32,400
Land		172,000
Accounts Payable						16,500
Common Stock						237,000
Retained Earnings						73,800
Totals	$	331,200			$	331,200

During January Year 1, the following transactions occur:

January		1		Purchase equipment for $21,200. The company estimates a residual value of $3,200 and a four-year service life.
January		4		Pay cash on accounts payable, $11,200.
January		8		Purchase additional inventory on account, $99,900.
January		15		Receive cash on accounts receivable, $23,700.
January		19		Pay cash for salaries, $31,500.
January		28		Pay cash for January utilities, $18,200.
January		30		Sales for January total $237,000. All of these sales are on account. The cost of the units sold is $123,500.

Information for adjusting entries:

1. Depreciation on the equipment for the month of January is calculated using the straight-line method.
2. The company estimates future uncollectible accounts. The company determines $4,700 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.)
3. Accrued interest revenue on notes receivable for January.
4. Unpaid salaries at the end of January are $34,300.
5. Accrued income taxes at the end of January are $10,700.

Exercise 7-21B Part 5 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a minus Answer is not complete. Assets Cash Accounts Receivable Less: Allowance Inventory Interest Receivable S 105.200 10,700 34.300 Balance Sheet January 31. Year 1 Liabilities $ 2,000 Accounts Payable 241.700 Income Tax Payable (13,501) Salaries Payable 14.400 135 Total Current Liabilities 244,734 Stockholder's Equity 172,000 Common Stock 20,825 Retained Earnings 32.400 150,200 Total Current Assets Land Equipment Notes Receivable 237.000 82,759 319,759 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 469,959 Total Assets S 469,959 w MacBook Air Required information View transaction list Journal entry worksheet 2 Record the closing entry for revenues. Note: Enter debits before credits General Journal Debit Credit Date January 31 Record entry Clear entry View general Journal Journal entry worksheet