Novak Corp. prepares quarterly francial statements. The post closing trial balance at December 31, 2001, is presented below NOVAK CORP Post-Closing Trials December 312021 Debit Credit $23,800 22.000 Accounts Receivable Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment Accumulated Depreciation-Building 12.30 Accounts Payable Common Stock Retained Caring 61.110 5110 S181300 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 2022.10 January 31, 2018 2. On February 1 Novak purchased computere n for $11250plu s $750 5750 cash paid with the rest count Check 453 was used 3. On March 1 Novak dapatent with a 10 for $12.000 cash Check 456 was used 4 On March 28. Novak recorded the quarters in a single entry. During this periodo n tales of $170.000 not including the sales referred to item 1 abovel All of the sales were account 5. On March 29, Novak collected 5163.000 From customers on account. On March 2, Novak paid $16.30 on coun t Check 457 was used 7. On March 29. Novak pand other operating 197.500 Check 455 was used 8. On March 31. Novak wrote offrective of $500 for customer who declared bankruptcy. 9. On March 31. Novsk sold for $1.20 equipment that originally cost $11.000, th e ted le of years ago $1.000 Ar t e depreciation of December 31, 2021. was 58.000 using the straight line method. Hin Record depreciation on the past sold the records ) Bank reconciliation data and adjustment data 1. The company reconciles its bank statement every quarter. Information from the December 31, 2021. bank reconciliation Deposit in transit: 12/30/2021 $5,500 Outstanding checks 1440 3,200 452 600 #453 700 #454 5.850 The bank statement received for the quarter ended March 31, 2022, is as follows: (100) Beginning balance per bank $28,650 Deposits: 1/2/2022.$5,500; 2/2/2022.57.200; 3/30/2022, 5163,000 175.700 Checks: #452, 5600#453, 5700;#457,516,390, 1458, 597.500 (115.1900 Debit memo: Bank service charge record as operating expense) Ending bank balance $89060 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 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 mount Record journal entries for transactions 1-9. (Credit account des 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.) Date No. Account Titles and Explanation Debit Credit February 1 1 . Cash 7200 Unearned Service Revenue 7200 February 1 2. Equipment 12000 Cash 3750 Accounts Payable 8250 TIL LI March Patents 12000 TILL TIR JL Accounts Receivable DEN Service Revenue 5. 1111111 Cash Accounts Receivable 163000 6. Accounts Payable Cash March 29 - 7. Other Operating Expenses 97500 Cash 97500 March 31 8. Allowance for Doubtful Accounts 300 Accounts Receivable 300 March 31 9. Depreciation Expense D 3 500 Accumulated Depreciation Equipment (To record depreciation expense) Cash 1620 Accumulated Depreciation Equipment JUUD Loss on Disposal of Plant Assets 380 Ement 11000 (To record sale of equipment) 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