II NEED THE BALANCES IN LEDGER ACCOUNTS USING T-ACCOUNTS
Blue Spruce Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below. BLUE SPRUCE CORP. Post-Closing Trial Balance December 31, 2021 Debit Credit Cash $22,700 Accounts Receivable 22,800 Allowance for Doubtful Accounts $1,500 Equipment 15,000 Accumulated Depreciation-Equipment 10,000 Buildings 109,000 Accumulated Depreciation-Buildings 10,000 Land 20,000 Accounts Payable 12,320 Common Stock 83,000 Retained Earnings 72,680 $189,500 $189,500 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Blue 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, Blue purchased computer equipment for $8,250 plus sales taxes of $750. $2,750 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Blue acquired a patent with a 10-year life for $9,000 cash. Check #456 was used. 4. On March 28, Blue recorded the quarter's sales in a single entry. During this period, Blue had total sales of $170,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29, Blue collected $163,000 from customers on account. 6. On March 29, Blue paid $16,320 on accounts payable. Check #457 was used. 7. On March 29, Blue paid other operating expenses of $95,500. Check #458 was used. 8. On March 31, Blue wrote off a receivable of $200 for a customer who declared bankruptcy. 9. On March 31, Blue sold for $1,900 equipment that originally cost $13,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of December 31, 2021, was $9,600 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 $5,500 Outstanding checks #440 3,300 #452 400 #453 900 #454 5,870 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $27,670 Deposits: 1/2/2022, $5,500; 2/2/2022, $8,400; 3/30/2022, $163,000 176,900 Checks: #452, $400; #453, $900; #457. $16,320;#458, $95,500 (113,120) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $91,350 2. Record revenue earned from item 1 above. 3. $22,800 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 26.00%. 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.) Record journal entries for transactions 1-9. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. Cash 8400 Unearned Service Revenue 8400 2. Equipment 9000 Cash 2750 Accounts Payable 6250 3. Patents 9000 Cash 9000 4. Accounts Receivable 170000 Service Revenue 170000 5. Cash 163000 Accounts Receivable 163000 6. Accounts Payable 16320 Cash 16320 I 6. Accounts Payable 16320 Cash 16320 7. Other Operating Expenses 95500 Cash 95500 8. Allowance for Doubtful Accounts 200 Accounts Receivable 200 9. Depreciation Expense 600 Accumulated Depreciation-Equipment 600 (To record depreciation expense) Cash 1900 Accumulated Depreciation Equipment 10200 Loss on Disposal of Plant Assets 900 Equipment 13000 (To record sale of equipment) (b) Enter the December 31, 2021, balances in ledger accounts using T-accounts. (Post entries in the order displayed in the problem statement.) Cash Accounts Receivable Allowance For Doubtful Accounts Equipment Accumulated Depreciation Equipment Land Buildings Accumulated Depreciation-Buildings Accounts Payable Common Stock Retained Earnings
