Flint Corporation prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below. FLINT CORPORATION Post-Closing Trial Balance December 31, 2021 Debit Credit Cash $22,800 Accounts Receivable 22,000 Allowance for Doubtful Accounts $1,400 Equipment 19,000 12,000 Accumulated Depreciation-Equipment Buildings Accumulated Depreciation-Buildings 103,000 12,000 Land 20,000 Accounts Payable 12,050 Common Stock Retained Earnings 88,000 61,350 $186,800 $186,800 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Flint collected fees of $8,400 in advance. The company will perform $700 of services each month from February 1, 2022, to January 31, 2018. 2. On February 1, Flint purchased computer equipment for $10,800 plus sales taxes of $600. $3,600 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Flint acquired a patent with a 10-year life for $11,400 cash. Check #456 was used. 4. On March 28, Flint recorded the quarter's sales in a single entry. During this period, Flint had total sales of $160,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29, Flint collected $153,000 from customers on account. 6. On March 29, Flint paid $16,050 on accounts payable. Check #457 was used. 7. On March 29, Flint paid other operating expenses of $97,500. Check #458 was used. 8. On March 31, Flint wrote off a receivable of $300 for a customer who declared bankruptcy. 9. On March 31, Flint sold for $1,490 equipment that originally cost $10,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of December 31, 2021, was $7,200 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 $4,000 Outstanding checks #440 3,500 #452 500 #453 800 #454 5,880 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $29,480 Deposits: 1/2/2022, $4,000; 2/2/2022, $8,400; 3/30/2022, $153,000 165,400 Checks: #452, $500;#453, $800; #457, $16,050; #458. $97,500 (114.850) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $79,930 2. Record revenue earned from item 1 above. 3. $24,400 of accounts receivable at March 31, 2022, 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 22.00%. 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 purchased 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. 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $13,000. 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: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Flint Corporation Bank Reconciliation 3/31/22 Balance Per Bank $ C 79,930 ,490 Add : Deposits in Transit 1 1,490 Less : Outstanding Checks #440 3500 #455 3,600 #455 #456 #454 #456 11,400 114001 5880 i 24380 Adjusted Balance Per Bank 57040 Balance Per Books 57140 Less : Bank Service Charge 1 100 Adjusted Balance Per Books 57040 Journalize entries related to bank reconciliation and all adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Round answers to O decimal places, eg. 5,275.) No. Date Account Titles and Explanation Debit Credit 1. 3/31/2022 2. 3/31/2022 3. 3/31/2022 4. 3/31/2022 5. 3/31/2022 6. 3/31/2022 7. 3/31/2022