Credit $ 1.200 Aberkonkie Corporation Post-Closing Trial Balance December 31, 2021 Debit Cash $ 24,300 Accounts Receivable Allowance for Doubtful Accounts Equipment 20.000 Accumulated Depreciation Equipment Buildings 100.000 Accumulated Depreciation-Buildings Land 20,000 Accounts Payable Common Stock Retained Earnings 15.000 15.000 12,370 90.000 53.130 $186,700 16.700 During the first quarter of 2022, the following transaction occurred: 1. On February 1. Aberkonkie collected fees of $12.000 in advance. The company will perform $1,000 of services each month from February 1, 2022. to January 31, 2023. 2. On February 1. Aberkonkie purchased computer equipment for $9.000 plus sales taxes of $600. $3,000 cash was paid with the rest on account Check 455 was used. 3. On March 1. Aberkonkie acquired a patent with a 10-year life for $9.500 cash. Check 456 was used. 4. On March 28, Aberkonkie recorded the quarter's sales in a single entry. During this period, Aberkonkie had total sales of $140,000 (not including the sales referred to in item 1 above). All of the sales were on account. $. On March 29, Aberkonkie collected $133,000 from customers on account 6/ On March 29. Aberkonkie paid $16,370 on accounts payable. Check 457 was used. On March 29, Aberkonkie paid other operating expenses of $97,525. Check 458 was used. 3. On March 31. Aberkonkie wrote off a receivable of $200 for a customer who declared bankruptey. 9. On March 31. Aberkonkie sold for $1.620 equipment that originally cost $11.00. It had an estimated life of 5 years and salvape of $1,000. Accumulated depreciation as of December 31, 2021, was $8.000 using the straight line method. (Hint: Record depreciation on the equipment sold, then record the sale.) Bank reconciliation data and adjustment data: 1. The company reconciles its bank statement every quarter. Information from the December 31, 2021. bank reconciliation is: Deposit in transit: 12/30/2021 $5.000 Outstanding checks 6440 3.444 452 333 1453 865 454 5.845 The bank statement received for the quarter ended March 31, 2022, is as follows Beginning balance per bank $ 29,787 Deposits: 1/2/2022, 55.000; 2/2/2022, 512,000; 3/30/2022, $133.000 150,000 Checks: 452, 5333; #453, 5865; 457. $16,370 458, 597,525 (115.093) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $ 64,594 2. Record revenue earned from item 1 above. 3. $26,000 of accounts receivable at March 31, 2022, are not past due yet. The bad debe percentage for these is 46. The remaining balance of accounts receivable is 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, 2022. The new equipment pur- chased in February is being depreciated on a straight-line basis over 5 years and salvage value was estimated at $1,200. The old equipment still owned is being depreciated over a 10-year life using straight line with no salvage value. Expand Your Critical Thinking 9-51 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000. 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: Pre- pare the income statement up to income before taxes and multiply by 30% to compute the amount.) Instructions a. Record journal entries for transactions 1-9. b. Enter the December 31, 2021, balances in ledger accounts using T-accounts. e. Post the journal entries to the ledger accounts for items 1-9. d. Prepare an unadjusted trial balance at March 31. e. Prepare a bank reconciliation in good form. f. Journalize and post entries related to bank reconciliation and all adjusting entries. g. Prepare an adjusted trial balance. h. Prepare an income statement and a retained earnings statement for the quarter ended March 31, 2022, and a classified balance sheet at March 31, 2022. $320,730 d. Trial balance total e. Adjusted balance per bank f. Total assets $44,32 $196,590