Marigold Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below. MARIGOLD CORP. Post-Closing Trial Balance December 31, 2021 Debit Credit Cash $22,700 Accounts Receivable 22,000 Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment Buildings Accumulated Depreciation-Buildings $1,300 23,000 11,000 100,000 11,000 20,000 12,300 85,000 67.100 $187.700 $187,700 Land Accounts Payable Common Stock Retained Earnings During the first quarter of 2022, the following transactions occurred 1. On February 1, Marigold collected fees of $15,600 in advance. The company will perform $1,300 of services each month from February 1, 2022. to January 31, 2018 2. On February 1, Marigold purchased computer equipment for $11.400 plus sales taxes of $600, $3,800 cash was paid with the rest on account Check #455 was used. 2. On February 1, Marigold purchased computer equipment for $11.400 plus sales taxes of $600. $3,800 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Marigold acquired a patent with a 10-year life for $12,000 cash. Check #456 was used. 4. On March 28, Marigold recorded the quarter's sales in a single entry. During this period, Marigold had total sales of $180,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29, Marigold collected $173,000 from customers on account. 6. On March 29, Marigold paid $16,300 on accounts payable. Check #457 was used. 7. On March 29, Marigold paid other operating expenses of $96,500. Check 458 was used. 8. On March 31, Marigold wrote off a receivable of $300 for a customer who declared bankruptcy. 9. On March 31, Marigold sold for $2,110 equipment that originally cost $14,000. It had an estimated life of 5 years and salvage of $1,000. Accumulated depreciation as of December 31, 2021, was $10,400 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 #440 3,200 #452 500 #4531 900 #454 5,890 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $28,190 Deposits: 1/2/2022,$5,000; 2/2/2022 $15,600; 3/30/2022, $173,000 193,600 Checks: #452 $500;#453,$900,#457, $16,300; #458,$96,500 Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $107.490 2. Record revenue earned from item 1 above. 3. $25,200 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 3. $25,200 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 $1,500. 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 $16,000. 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 required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date No. Account Titles and Explanation 1. Cash February 19 Unearned Service Revenue February 1 2. Accounts Payable March 1 3. Patents March 1 3. Patents March 28 : 4. March 29 $ 5. cas Accounts Receivable March 29 6. Accounts Payable March 29. 7. Other Operating Expenses Cash March 31 8. Accounts Receivable March 31 9. Depreciation Expense Accumulated Depreciation Equipment (To record depreciation expense) Cash March 29. 7. Other Operating Expenses Cash March 31 : 8. Accounts Receivable March 314 9. Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense) Cash (To record sale of equipment)