Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Pronghorn Corp Bank Reconciliation 3/31/17 Balance Per Bank 78820 Add Deposits in Transit 1980 Less: Outstanding Checks #440 4200 7130 #454 #455 #456 3660 26702 54098 Adjusted Balance Per Bank Balance Per Books 54198 26702 54098 Adjusted Balance Per Bank 54198 Balance Per Books 100 LessBank Service Charge 54098 Adjusted Balance Per Books Question 2 Pronghorn Corp prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is presented below PRONGHORN CORP Post-Closing Trial Balance December 31, 2016 Debit $29,640 27,330 Credit Cash Accounts Receivable Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment Buildings Accumulated Depreciation-Buildings Land Accounts Payable Common Stock Retained Earnings $1,460 24,400 18,300 122,000 18,300 24,400 15,090 109,800 64,820 $227,770 $227,770 During the first quarter of 2017, the following transactions occurred: 1. On February 1, Pronghorn collected fees of $14,640 in advance. The company will perform $1,220 of services each month from February 1, 2017, to January 31, 2. On February 1, Pronghorn purchased computer equipment for $10,980 plus sales taxes of $732$3,660 cash was paid with the rest on account. Check #455 was 3. On March 1, Pronghorn acquired a patent with a 10-year life for $11,712 cash. Check #456 was used used value 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $12,200. 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 is required, select "No Entry" for the account titles and enter O for the amounts.) Date No. Account Titles and Explanation Debit Credit February 1 # 1. Cash 14640 Unearned Service Revenue 14640 February 1# 2, Equipment Cash 3660 Accounts Payable 8052 | March 1 3. Patents Cash March 28 # 4, Accounts Receivable 170800 Service Revenue 170800 March 29 5. Cash 162260 Accounts Receivable 162260 March 296. Accounts Payable 19970 Cash 19970 March 29 7. Other Operating Expenses 118980 Cash 118980 March 31 8. Allowance for Doubtful Accounts 240 Accounts Receivable 240 March 319. Depreciation Expense 610 610 Accumulated Depreciation-Equipment (To record depreciation expense) Cash 1980 Accumulated Depreciation-Equipment 10370 Loss on Disposal of Plant Assets 1070 Equipment 13420 ournalize entries related to bank reconciliation and all adjusting entries. (Credit account titles 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 0 for the amounts. Round answers to O decimal places, e.g 5,275. No. Date Account Titles and Explanation Debit Credit 1. 3/31/2017 2. 3/31/2017 3. 3/31/2017 4. 3/31/2017 5. 3/31/2017 6. 3/31/2017 7. 3/31/2017 Post entries related to bank reconciliation and all adjusting entries. (Post entries in the order presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.) Ba Feb. 1 Mar. 29 Mar. 31 Cash 29,640 Feb. 1 14,640 Mar. 1 162,260 Mar. 29 3,660 11,712 19,970 118,980 54198 1,980 Mar. 29 Ba Accounts Receivable 27,330 Mar. 29 170,800 Mar. 31 162,260 240 Ba Mar. 28 Allowance for Doubtful Accounts Mar. 31 240 Bal 1,460 Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Pronghorn Corp Bank Reconciliation 3/31/17 Balance Per Bank 78820 Add Deposits in Transit 1980 Less: Outstanding Checks #440 4200 7130 #454 #455 #456 3660 26702 54098 Adjusted Balance Per Bank Balance Per Books 54198 26702 54098 Adjusted Balance Per Bank 54198 Balance Per Books 100 LessBank Service Charge 54098 Adjusted Balance Per Books Question 2 Pronghorn Corp prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is presented below PRONGHORN CORP Post-Closing Trial Balance December 31, 2016 Debit $29,640 27,330 Credit Cash Accounts Receivable Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment Buildings Accumulated Depreciation-Buildings Land Accounts Payable Common Stock Retained Earnings $1,460 24,400 18,300 122,000 18,300 24,400 15,090 109,800 64,820 $227,770 $227,770 During the first quarter of 2017, the following transactions occurred: 1. On February 1, Pronghorn collected fees of $14,640 in advance. The company will perform $1,220 of services each month from February 1, 2017, to January 31, 2. On February 1, Pronghorn purchased computer equipment for $10,980 plus sales taxes of $732$3,660 cash was paid with the rest on account. Check #455 was 3. On March 1, Pronghorn acquired a patent with a 10-year life for $11,712 cash. Check #456 was used used value 5. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $12,200. 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 is required, select "No Entry" for the account titles and enter O for the amounts.) Date No. Account Titles and Explanation Debit Credit February 1 # 1. Cash 14640 Unearned Service Revenue 14640 February 1# 2, Equipment Cash 3660 Accounts Payable 8052 | March 1 3. Patents Cash March 28 # 4, Accounts Receivable 170800 Service Revenue 170800 March 29 5. Cash 162260 Accounts Receivable 162260 March 296. Accounts Payable 19970 Cash 19970 March 29 7. Other Operating Expenses 118980 Cash 118980 March 31 8. Allowance for Doubtful Accounts 240 Accounts Receivable 240 March 319. Depreciation Expense 610 610 Accumulated Depreciation-Equipment (To record depreciation expense) Cash 1980 Accumulated Depreciation-Equipment 10370 Loss on Disposal of Plant Assets 1070 Equipment 13420 ournalize entries related to bank reconciliation and all adjusting entries. (Credit account titles 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 0 for the amounts. Round answers to O decimal places, e.g 5,275. No. Date Account Titles and Explanation Debit Credit 1. 3/31/2017 2. 3/31/2017 3. 3/31/2017 4. 3/31/2017 5. 3/31/2017 6. 3/31/2017 7. 3/31/2017 Post entries related to bank reconciliation and all adjusting entries. (Post entries in the order presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.) Ba Feb. 1 Mar. 29 Mar. 31 Cash 29,640 Feb. 1 14,640 Mar. 1 162,260 Mar. 29 3,660 11,712 19,970 118,980 54198 1,980 Mar. 29 Ba Accounts Receivable 27,330 Mar. 29 170,800 Mar. 31 162,260 240 Ba Mar. 28 Allowance for Doubtful Accounts Mar. 31 240 Bal 1,460