prepare a bank reconciliation in good form
Concord Corporation prepares quarterly financial statements. The post-closing trial balance at December 31, 2021, is presented below. CONCORD CORPORATION Post-Closing Trial Balance December 31, 2021 Credit Cash Debit $22.400 23,000 Accounts Receivable Allowance for Doubtful Accounts $1,200 Equipment 24,000 Accumulated Depreciation-Equipment 11,000 Buildings 121,000 Accumulated Depreciation-Buildings 11,000 Land 20,000 Accounts Payable 12,150 Common Stock 86,000 Retained Earnings 89.050 $210,400 $210,400 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Concord collected fees of $6,000 in advance. The company will perform $500 of services each month from February 1, 2022, to January 31, 2018 2. On February 1, Concord purchased computer equipment for $9.000 plus sales taxes of $600. $3,000 cash was paid with the rest on account Check #455 was used. detentulah 10 A WAREN 3. On March 1. Concord acquired a patent with a 10-year life for $9.600 cash. Check 1456 was used. 4. On March 28, Concord recorded the quarter's sales in a single entry. During this period. Concord had total sales of $150,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29. Concord collected $143,000 from customers on account. 6. On March 29. Concord paid $16,150 on accounts payable. Check #457 was used. 7. On March 29. Concord paid other operating expenses of S96,000. Check #458 was used. 8. On March 31. Concord wrote off a receivable of $200 for a customer who declared bankruptcy. 9. On March 31, Concord sold for $1.940 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 $6,000 Outstanding checks 1440 3.200 1452 500 1453 700 1454 5.890 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $26.690 Deposits: 1/2/2022.56,000; 2/2/2022. 56,000; 3/30/2022. $143,000 155.000 Checks: #452, 5500: #453, 5700, 457,516,150: 1458, 596,000 (113.350) Debit memo: Bank service charge record as operating expense) (100) Ending bank balance $68.240 2. Record revenue earned from item 1 above. 3. $23,600 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 $900. 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.) Your answer is correct. 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.) Date No. Account Titles and Explanation Debit Credit February 14 1. Cash 6000 Uneared Service Revenue 6000 February 1 2. Equipment 9600 Cash 3000 Accounts Payable 6600 March 1 9 3. Patents 9600 Cash 9600 March 28 4. Accounts Receivable 150000 Service Revenue 150000 March 294 5. Cash 143000 Accounts Receivable 143000 March 29 6. Accounts Payable 16150 March 29 7. Other Operating Expenses Cash 96000 March 31 8. Allowance for Doubtful Accounts Accounts Receivable March 319 . Depreciation Expense Accumulated Depreciation Equipment 600 (To record depreciation expense) Cash 1940 Loss on Disposal of Plant Assets Accumulated Depreciation Equipment 10200 Equipment 13000 (To record sale of equipment) e Textbook and Media List of Accounts Attempts: 6 of 6 used Your answer is correct. Enter the December 31, 2021, balances in ledger accounts using Taccounts. (Post entries in the order displayed in the problem statement.) Cash 22400 Accounts Receivable | Bal. 23000 Allowance For Doubtful Accounts Equipment Bal. 240000 Accumulated Depreciation Equipment Bal 11000 Land Bal. Bal. 20000 20000 C Buildings 12100 Accumulated Depreciation-Buildings 11000 Accounts Payable 12150 Common Stock 86000 Retained Earnings 89050 e Textbook and Media List of Accounts Attempts: 1 of 6 usec Your answer is correct. Post the journal entries to the ledger accounts for items 1-9. (Post entries in the order of journal entries presented above Cash 22,400 Feb. 14 Bal 3000 Feb. 1 6000 143000 16150 Mar 31 1940 Mar 29 96000 Accounts Receivable 000 Marz Bal 23,000 150000 Mar 28 : Mar 31 : Allowance for Doubtful Accounts 200 Bal. Mar. 31 1,200 Equipment 24,000 Mar 314 Bal. 13000 Feb. 1 : 9500 Mar 31 Accumulated Depreciation-Equipment 10200 Bal. Mar 314 11,000 600 Land 20,000 Buildings 121,000 Accumulated Depreciation-Buildings Bar 11,000 Patents 9600 Accounts Payable 16150 Bal. 12,150 Feb. 1 6600 Unearned Service Revenue Feb. 10 6000 Common Stock Bal. 86,000 Retained Earnings Bal. 89,050 Service Revenue 150000 Other Operating Expenses 96000 Mar. 29 Depreciation Expense Mar 31 600 Loss on Disposal of Plant Assets Prepare an unadjusted trial balance at March 31. Concord Corporation Trial Balance 3/31/22 Debit Credit Cash 48590 Accounts Receivable 29800 Allowance for Doubtful Accounts 1000 Equipment 20600 1400 Accumulated Depreciation Equipment Land 20000 Buildings 121000 11000 Accumulated Depreciation Buildings Patents 2600 Accounts Payable 6000 Unearned Service Revenue 86000 Common Stock Equipment 20600 1400 Accumulated Depreciation Equipment Land 20000 Buildings 121000 Accumulated Depreciation-Buildings 11000 Patents 2600 Accounts Payable Unearned Service Revenue 6000 Common Stock B6000 89050 Retained Earnings 150000 Service Revenue Other Operating Expenses 96000 600 Depreciation Expense 860 Loss on Disposal of Plant Assets 347050 347050 Totals Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Concord Corporation Bank Reconciliation
