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exercise 7-218 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, Year 1, the general ledger of a company includes the following account balances: Credit $ 60,400 Debit 28,400 $ 3,900 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Notes Receivable (51, due in 2 years) Land Accounts Payable Common Stock Retained Earnings Totals 38.000 32,400 172,000 16,500 237,000 73,800 31/200 53515200 During January Year 1, the following transactions occur January 1Purchase equipment for $21,200. The company catimates a residual value of $3,200 and a four-year service life. January Pay cash on accounts payable, 911,200. January Parehase additional inventory on account. 599,900. January 15 Receive cash on accounts receivable, $23,200. UTY 19 Pay cash to salaries, 31.500. January 25 Pay cash for January utilities. $18.200 January 30 sales tor January total $237.000. All of these sales are on account. The cost of the units sold in 5123,500 Information for adjusting entries 2. Record the adjusting entries on January 31 for the above transactions, (If no entry is required select particular "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 Depreciation on the equipment for the month of January is calculated using the straight-line method. Record the adjusting entry for depreciation. 05 Note: Enter debits before credits Date General Journal Debit Credit January 31 Recordatory Clear View general Journal SC WIN Prev 4 7 of 7 F Next > MacBook Air BO 73 GOC 17 # MacBook Air 80 F3 dou 44 17 @ %23 3 A N $ 4 % 5 6 & 7 8 8 9 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is requi select particular "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 Accrued interest revenue on notes receivable for January. Record the adjusting entry for interest Note: Enter debits before credits Date January 31 General Journal Debit Credit Record entry Clementy View general Journal 07 xercise 7-21B Part 5 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a m Balance Sheet January 31, Year 1 Assets Liabilities Torrent Assets Total Current abiities Stockholder's Equity 0 5 Tots Stockholders' Equity Totes and Stockholders' Equity $ 0 5 6 7 Next > MacBook Air 13 999 11 1 FB # 3 A 2 $ 4 % 5 * 6 & 7 co 8 9 0 R W E 70 R T T Y U w transaction list Journal entry worksheet MacBook Air 12 80 ODO DOO 4 >11 E7 # 3 A N $ 4 * + 5 6 & 7 8 9 9 zw transaction list Journal entry worksheet MacBook Air FI 20 FY 14 II 2 FB @ #2 A $ % 2 & O Required information 7. Analyze how well the company manages its assets: Requirement 1: a-1. Calculate the return on assets ratio for the month of January. Return on Assets Ratio Choose Numerator Choose Denominator Return on Assets Ratio Return on assets -2.1 De average return on assets for the industry in January is 2%, is the company mbre MacBook Air 3-2. the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies the same industry? More profitable Less profitable Requirement 2: 1. Calculate the profit margin for the month January Cho Numero Chose Denomina Pog Pre MacBook Air 30 N3 A # 3 $ 4 % 5 6 8 9 0 W E R Y C 1 O P 4 S D F G . J Z C V B B N. > M Required information b-2. W the industry average profit margin is 4%, is the company more or less efficient at converting sales to profit than other companies in the same industry? More efficient less efficient Requirement 3 1 01. Calculate the turnover ratio for the month of January Cho Numero Asset Tumorbo Choose Denminator Asset Tumovare Asset Tumover MacBook Air BO @ 2 # 3 $ 4 % 5 & 7 * 8 6 Y 0 9 Q W E R T Y U O A S D F G . J K N MacBook Air BO 73 GOC 17 # MacBook Air 80 F3 dou 44 17 @ %23 3 A N $ 4 % 5 6 & 7 8 8 9 2. Record the adjusting entries on January 31 for the above transactions. (If no entry is requi select particular "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 Accrued interest revenue on notes receivable for January. Record the adjusting entry for interest Note: Enter debits before credits Date January 31 General Journal Debit Credit Record entry Clementy View general Journal 07 xercise 7-21B Part 5 5. Prepare a classified balance sheet as of January 31, Year 1. (Deductible amounts should be indicated with a m Balance Sheet January 31, Year 1 Assets Liabilities Torrent Assets Total Current abiities Stockholder's Equity 0 5 Tots Stockholders' Equity Totes and Stockholders' Equity $ 0 5 6 7 Next > MacBook Air 13 999 11 1 FB # 3 A 2 $ 4 % 5 * 6 & 7 co 8 9 0 R W E 70 R T T Y U w transaction list Journal entry worksheet MacBook Air 12 80 ODO DOO 4 >11 E7 # 3 A N $ 4 * + 5 6 & 7 8 9 9 zw transaction list Journal entry worksheet MacBook Air FI 20 FY 14 II 2 FB @ #2 A $ % 2 & O Required information 7. Analyze how well the company manages its assets: Requirement 1: a-1. Calculate the return on assets ratio for the month of January. Return on Assets Ratio Choose Numerator Choose Denominator Return on Assets Ratio Return on assets -2.1 De average return on assets for the industry in January is 2%, is the company mbre MacBook Air 3-2. the average return on assets for the industry in January is 2%, is the company more or less profitable than other companies the same industry? More profitable Less profitable Requirement 2: 1. Calculate the profit margin for the month January Cho Numero Chose Denomina Pog Pre MacBook Air 30 N3 A # 3 $ 4 % 5 6 8 9 0 W E R Y C 1 O P 4 S D F G . J Z C V B B N. > M Required information b-2. W the industry average profit margin is 4%, is the company more or less efficient at converting sales to profit than other companies in the same industry? More efficient less efficient Requirement 3 1 01. Calculate the turnover ratio for the month of January Cho Numero Asset Tumorbo Choose Denminator Asset Tumovare Asset Tumover MacBook Air BO @ 2 # 3 $ 4 % 5 & 7 * 8 6 Y 0 9 Q W E R T Y U O A S D F G . J K N