Bank reconciliation data and adjustment data:

1.

The company reconciles its bank statement every quarter. Information from the December 31, 2016, bank reconciliation is:

Deposit in transit:		12/30/2016		$6,100
Outstanding checks		#440		4,200
		#452		410
		#453		1,060
		#454		7,130

The bank statement received for the quarter ended March 31, 2017, is as follows:

Beginning balance per bank		$36,340
Deposits: 1/2/2017, $6,100; 2/2/2017, $14,640; 3/30/2017, $162,260		183,000
Checks: #452, $410; #453, $1,060; #457, $19,970; #458, $118,980		(140,420)
Debit memo: Bank service charge (record as operating expense)		(100)
Ending bank balance		$78,820

2.

Record revenue earned from item 1 above.

3.

$31,720 of accounts receivable at March 31, 2017, are not past due yet. The bad debt percentage for these is 4%. The balance of accounts receivable are past due. The bad debt percentage for these is 23.75%. Record bad debt expense. (Hint: You will need to compute the balance in accounts receivable before calculating this.)

4.

Depreciation is recorded on the equipment still owned at March 31, 2017. The new equipment purchased in February is being depreciated on a straight-line basis over 5 years and salvage value was estimated at $1,460. The old equipment still owned is being depreciated over a 10-year life using straight-line with no salvage value.

5.

Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $12,200.

6.

Amortization is recorded on the patent.

7.

The income tax rate is 30%. This amount will be paid when the tax return is due in April. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

*(e) Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Pronghorn Corp Bank Reconciliation