Novak Corp, prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below. NOVAK CORP. Post-Closing Trial Balance December 31, 2021 Credit Cash Debit $23,800 22,000 Accounts Receivable Allowance for Doubtful Accounts Equipment 17,000 12,000 Accumulated Depreciation-Equipment Buildings 103,000 Accumulated Depreciation-Buildings 12,000 Land Accounts Payable Common Stock 20,000 12,390 87.000 61,110 $185,800 $185,800 Retained Earnings During the first quarter of 2022, the following transactions occurred: MacBook Pro VIUJ,DU $185,808 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Novak collected fees of $7,200 in advance. The company will perform $600 of services each month from February 1, 2022, to January 31, 2018. 2. On February 1, Novak purchased computer equipment for $11,250 plus sales taxes of $750.$3,750 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Novak acquired a patent with a 10-year life for $12,000 cash. Check #456 was used. 4. On March 28, Novak recorded the quarter's sales in a single entry. During this period, Novak 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, Novak collected $163,000 from customers on account. 6. On March 29. Novak paid $16,390 on accounts payable. Check #457 was used. 7. On March 29, Novak paid other operating expenses of $97,500. Check 458 was used 8. On March 31, Novak wrote off a receivable of $300 for a customer who declared bankruptcy. 9. On March 31. Novak sold for $1,620 equipment that originally cost $11,000. It had an estimated life of 5 years and salvage 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 $5,500 Outstanding checks #440 3,200 - MacBook Pro Bank reconciliation data and adjustment data: 1. The company reconciles Its bank statement every quarter. Information from the December 31, 2021, bank reconciliationis Deposit in transit: 12/30/2021 $5,500 Outstanding checks #440 3,200 #452 600 #453 700 #454 5,850 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $28,650 Deposits: 1/2/2022, $5,500; 2/2/2022, $7.200: 3/30/2022, $163,000 175,700 Checks: #452, $600;#453, $700;#457. $16,390, W458. $97,500 (115,190) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $89,060 2. Record revenue earned from item 1 above. 3. $22.000 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 24.00%. 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 ownedis 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.) Enter the December 31, 2021, balances in ledger accounts using T-accounts. (Post entries in the order displayed in the problem statement.) Cash Bal. Accounts Receivable Allowance For Doubtful Accounts Bal. Equipment Accumulated Depreciation--Equipment Land Bale Buildings Accumulated Depreciation-Buildings Bal ? Accounts Payable Common Stock Retained Earnings Bal. . Assista eTextbook and Media Assista List of Accounts Novak Corp, prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below. NOVAK CORP. Post-Closing Trial Balance December 31, 2021 Credit Cash Debit $23,800 22,000 Accounts Receivable Allowance for Doubtful Accounts Equipment 17,000 12,000 Accumulated Depreciation-Equipment Buildings 103,000 Accumulated Depreciation-Buildings 12,000 Land Accounts Payable Common Stock 20,000 12,390 87.000 61,110 $185,800 $185,800 Retained Earnings During the first quarter of 2022, the following transactions occurred: MacBook Pro VIUJ,DU $185,808 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Novak collected fees of $7,200 in advance. The company will perform $600 of services each month from February 1, 2022, to January 31, 2018. 2. On February 1, Novak purchased computer equipment for $11,250 plus sales taxes of $750.$3,750 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Novak acquired a patent with a 10-year life for $12,000 cash. Check #456 was used. 4. On March 28, Novak recorded the quarter's sales in a single entry. During this period, Novak 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, Novak collected $163,000 from customers on account. 6. On March 29. Novak paid $16,390 on accounts payable. Check #457 was used. 7. On March 29, Novak paid other operating expenses of $97,500. Check 458 was used 8. On March 31, Novak wrote off a receivable of $300 for a customer who declared bankruptcy. 9. On March 31. Novak sold for $1,620 equipment that originally cost $11,000. It had an estimated life of 5 years and salvage 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 $5,500 Outstanding checks #440 3,200 - MacBook Pro Bank reconciliation data and adjustment data: 1. The company reconciles Its bank statement every quarter. Information from the December 31, 2021, bank reconciliationis Deposit in transit: 12/30/2021 $5,500 Outstanding checks #440 3,200 #452 600 #453 700 #454 5,850 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $28,650 Deposits: 1/2/2022, $5,500; 2/2/2022, $7.200: 3/30/2022, $163,000 175,700 Checks: #452, $600;#453, $700;#457. $16,390, W458. $97,500 (115,190) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $89,060 2. Record revenue earned from item 1 above. 3. $22.000 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 24.00%. 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 ownedis 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.) Enter the December 31, 2021, balances in ledger accounts using T-accounts. (Post entries in the order displayed in the problem statement.) Cash Bal. Accounts Receivable Allowance For Doubtful Accounts Bal. Equipment Accumulated Depreciation--Equipment Land Bale Buildings Accumulated Depreciation-Buildings Bal ? Accounts Payable Common Stock Retained Earnings Bal. . Assista eTextbook and Media Assista List of Accounts