Concord Corporation prepares quarterly financial statements. The post-closing trial balance at December 31, 2016 is presented below. Please help with all parts of this problem.
- Journal Entries 1-9
- Balances in Ledger accounts using T-Accounts
- Journal Entries to Ledger Accounts for items 1-9
- Trial Balance
- Bank Reconciliation
- Journalize Entries related to bank reconciliation and all Adjusting Entries
- Post Entries related to Bank Reconciliation and all Adjusting Entries
- Adjusted Trial Balance
- Income Statement
- Retained Earnings Statement
- Balance Sheet
Question 2 Concord Corporation prepares quarterly nancial statements. The post-closing trial balance at December 31, 2015, is presented below. CONCORD CORPORATION Post lo g Tr | Balance December 31, 2015 Debit Credlt Cash $26,250 Accounts Receivable 24,190 Allowance for Doubtful Accounts $1,300 Equipment 21,600 Accumulated DepreciationEquipment 15,200 Buildings 108,000 Accumulated DepreciationBuildings 16,200 Land 21,600 Accounts Payable 13,360 Common Stock 97,200 Retained Earnings $7,330 $201,640 $201,640 During the rst quarter of 2017, the following transactions occurred: On February 1, Concord collected fees or $12,950 In advance The company will perform $1,050 of services each month from February 1, 2017, to January 31, 20101 on February 1, Concord purchased computer equipment for $9,720 plus sales taxes of $543, $3,240 cash was paid with the rest on account Check #45 was used. On March 1. Concord acquired a patent with a 10cyear life for $10,353 cash. check #455 was used. on March 20, concord recorded the quarter's sales in a single entry. During this period, concord had total sales of $151,200 (not including the sales referred to in Item 1 above). All of the sales were on account. On March 29, Concord collected $143,540 from customers on account On March 29. Concord paid $17,580 on accouns payable. Check #457 was used. on March 29, concord paid other operating expenses of $105,330. Check 3450 was used. On March 31, Concord wrote off a receivable of $220 for a customer who declared bankruptcyt On March 31, Concord sold for $1,750 equipment that originally cost $11,380, it had an estimated life of 5 years and salvage of $1,080. Accumulated depreciation as or December 31, 2015, was $8,540 using the straight line method. (Hint: Record depreciation on the equipment sold, then record the sale.) SOPN?'P'PH.Nt-' Bank reconciliation data and adjustment data: 1. The company reconciles IE bank statement every quarter. information from the December 31, 2015, bank reconciliation is: Deposit in transit: 12/30/2016 $5,400 Outstanding checks #440 3,720 #452 350 #453 930 #454 5,310 The bank statement received for the quarter ended March 31, 2017, is as follows: Beginning balance per bank $32,170 Deposits: 1/2/2017, $5,400; 2/2/2017, $12,950; 3/30/2017, $143,540 152,000 Checks: #452, $350; #453, $930; #457, $17,500; #450, $105,330 (124,300) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $59,770 2. Record revenue earned from item 1 above. 3. $20,030 of accounm receivable at March 31, 2017, are not past due yet. The bad debt percentage for these is 4%. The balance of acoouris receivable are past due. The bad debt percentage for these is 23.75%. Record bad debt expense. (Hl'nl: 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 $1,300. The old equipment still owned is being depreciated over a 10- year life using straight-line with no salvage value. . Depreciation is recorded on the building on a straight-line basis based on a 30-year lite and a salvage value of $10,000. . 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.) aiui ecard journal entries for tron sections 1 - 9 ( credit account titles are automatically in is require No . Account Titles and Explanation Debit Credit February 1 9 Unearned Service Revenue February 1 2 . Equipment Accounts Payable MILITI 3 . Patents [ 20368 March 28 4 . Accounts Receivable les Revenue March 29 9 5 . Cash 1243640 ACCOUNT RECEIVable March 25 5 6 . Accounts Payable 7 . Other Operating Expenses * 8 . Allowance for Doubtful Accounts ACCOUNTS RECEIVable March 31 9 . Depreciation Expense Accumulated Depreciation - Equip ( To record depreciation expense ) Accumulated Depreciation - Equipme Loss on Disposal of Plant Assets Equipment ( To record sale of equipment )Enter the December 31, 2016, balances in ledger accounts using T-accounts. ( Post entries in the order displayed in the problem statement.) Cash Bal. 26250 Accounts Receivable Bal 24190 Allowance For Doubtful Accounts A 1300 Equipment Bal. 21600 A Accumulated Depreciation-Equipment Al 16200 Land Bal. 21600 Buildings Bal. 108000 Accumulated Depreciation-Buildings A Bal. 16200 Accounts Payable e Bal. Common Stock Bal 97200 Retained Earnings e Bal. 57380Post the journal entries to the ledger accounts for items 1-9. (Post entries in the order of journal entries presented above.) Cash Bal. 26,250 3240 Feb. 1 12960 Mar. 1 10368 Mar. 29 4 143640 Mar. 29 - 17680 Mar. 31 - 1750 1 Mar. 29 105330 Accounts Receivable Bal. 24,190 Mar. 29 . 143640 Mar. 28 4 Mar. 31 9 220 Allowance for Doubtful Accounts Mar. 319 220 Bal. 1,300 Equipment Bal. 21,600 Mar. 31 9 11880 Feb. 14 Accumulated Depreciation-Equipment Mar. 319 9180 Bal. 16,200 Mar. 314 Land Bal. 21,600 Buildings Bal. 108,000 Accumulated Depreciation-Buildings Bal. 16,200 Patents Mar. 1 9 Accounts Payable Mar. 29 - 17680 Bal. 13,360 Feb. 1 7128 Unearned Service Revenue Feb. 1 12960 Common Stock Bal. 7,200 Retained Earnings Bal. 57. Service Revenue Mar. 28 9 151200 Other Operating Expenses Mar. 29 - 105330 Depreciation ExpenseDuprecllon Expense v] of Int Assets Concord Corporaon Trial Balance 3/31/17 ash $75; Totals Prepare a bank reconciliation in good form. ( List items that increase balance as per bank first.) Concord Corporation Bank Reconciliation 3/31/17 Balance Per Bank A Add . Deposits in Transit A Less . Outstanding Checks AJournalize entries related to bank reconciliation and all adjusting entries . ( Credit account titles are automatically indented when the an at is entered . Do not indent manually . If no entry is required select No Entry forth the account tries and enter D for the amounts . Round answers to a decimal places , e . g . 5 , 275 . ) No . Date Account Titles and Explanation 1 3/31/2017 2 . 3/31/2017 3 . 3/ 31/ 2017 4 3/ 31/ 2017 5 . 3/31/ 2017 6 . 3/31/ 2017 7 3/31/ 2017Post entries related to bank reconciliation and all adjusting entries. (Post entries in the order presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.) Cash Bal. 26,250 Feb. 1 3,240 Feb. 1 12,960 Mar. 1 10,368 Mar. 29 143,640 Mar. 29 17,680 Mar. 31 1,750 Mar. 29 105,330 A A Accounts Receivable Bal. 24,190 Mar. 29 143,640 r. 28 151,200 Mar. 31 220 Allowance for Doubtful Accounts Mar. 31 220 Bal. 1,300 Equipment Bal. 21,600 Mar. 31 11,880 Feb. 1 10,368 Accumulated Depreciation-Equipment Mar. 31 9,180 Bal. 16,200 |Mar. 31 540 Al e Land Bal 21,600 Al Buildings Bal 108,000 A Accumulated Depreciation-Buildings Bal. 16,200 A Patents Mar. 1 10,368 Accounts PayableMar. 29 Mar. 29 Mar. 31 Mar. 31 Accounts Payable 17,680 Bal. Feb. 1 0 0 0 Unearned Service Revenue Feb. 1 0 0 0 Income Taxes Payable A A V V A A V V Common Stock Bal. Retained Earnings Bal. Service Revenue Mar. 28 0 0 0 0 0 Other Operating Expenses 105,330 0 0 0 0 0 Depreciation Expense 54D 0 0 0 0 0 0 0 Loss on Disposal of Plant Assets 9 50 9 50 Amortization Expense Bad Debt Expense A A V V A A V V Income Tax Expense 0 0 13,360 7,128 12,950 97,200 97,200 57,380 57,380 151,200 prepare an adjusted trial balance at March 31. ( (Round aeci places, 1215.) Concord Corporation Adjusted Trial Balance Debit CreditPrepare an income statement for the quarter ended March 31r 2017. (Round answers to 0 decimal places, (9.9. 5,275.) Concord Corporation Income Statement 1b 1D 1D 1b 4b 4} U; Prepare retained earnings statement for the quarter ended March 31, 2017. (Round answers to 0 decimal places, e.g. 5,275.) Concord Corporation Retained Earnings Statement 1b {19 u 0 1b
