need help journalizing the entries related to the bank reconciliation an all adjusting entries
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 $1,500 Allowance for Doubtful Accounts Equipment Accumulated Depreciation Equipment 15,000 10,000 Buildings 109,000 Accumulated Depreciation-Buildings 10.000 Land 20,000 12.320 Accounts Payable Common Stock 83,000 Retained Earnings 72.680 $189,500 $189.500 During the first quarter of 2022, the following transactions occurred: 1. 2. 3. 4 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. On February 1, Blue purchased computer equipment for $8,250 plus sales taxes of $750, $2,750 cash was paid with the res on account. Check #455 was used. On March 1, Blue acquired a patent with a 10-year life for $9,000 cash. Check #456 was used. 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. On March 29, Blue collected $163,000 from customers on account. On March 29, Blue paid $16,320 on accounts payable. Check #457 was used. 5. 6. 7. On March 29. Blue paid other operating expenses of $95,500. Check #458 was used. 8. 9. On March 31, Blue wrote off a receivable of $200 for a customer who declared bankruptcy. 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: 12/30/2021 $5,500 Deposit in transit: Outstanding checks #440 3.300 3452 400 #453 900 8454 5,870 The bank statement received for the quarter ended March 31, 2022, is as follows: $27,670 Beginning balance per bank 176,900 (113,120) Deposits: 1/2/2022, $5,500; 2/2/2022. $8,400; 3/30/2022. $163,000 Checks: 8452, $400; #453, $900: #457, $16,320;#458, 595,500 Debit memo: Bank service charge (record as operating expense) Ending bank balance (100) $91,350 2. 3. 4 Record revenue earned from item 1 above, $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 recevable before calculating this.) 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 Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $13,000 Amortization is recorded on the patent. a 5. 6. 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.) Balance Per Bank 91350 Add : Deposits in Transit 1900 Less : Outstanding Checks 1440 3300 i #454 5870 455 2750 9000 #456 20920 $ 72330 Adjusted Balance Per Bank 20920 i Adjusted Balance Per Bank $ 72330 Balance Per Books $ 72430 Less : Bank Service Charge 100 Adjusted Balance Per Books $ 72330 eTextbook and Media List of Accounts Attempts: 1 of 3 used Journalize entries related to bank reconciliation and all adjusting entries. (Credit account tities 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 for the amounts. Round answers to decimal places, eg. 5,275) No. Date Account Tities and Explanation Debit Credit 1. 3/31/2022 2 3/31/2022 3. 3/31/2022 4. 3/31/2022 4. 3/31/2022 5. 3/31/2022 6. 3/31/2022 7. 3/31/2022
