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Marigold Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2021. is presented below. MARIGOLD CORP. Post-Closing Trial Balance December 31, 2021 Debit Credit Cash $22,700 22,000 Accounts Receivable Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment $1,300 23,000 11,000 Buildings 100,000 Accumulated Depreciation-Buildings 11.000 Land 20,000 Accounts Payable 12,300 Common Stock Retained Earnings 85,06 67.100 $187,700 $187,700 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Marigold collected fees of $15,600 in advance. The company will perform $1,300 of services each month from February 1, 2022. to January 31, 2018 2. On February 1, Marigold purchased computer equipment for $11.400 plus sales taxes of $600. $3,800 cash was paid with the rest on account Check #455 was used. 2. On February 1, Marigold purchased computer equipment for $11.400 plus sales taxes of $600 $3,800 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Marigold acquired a patent with a 10-year life for $12,000 cash. Check #456 was used. 4. On March 28, Marigold recorded the quarter's sales in a single entry. During this period, Marigold had total sales of $180,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29, Marigold collected $173,000 from customers on account. 6. On March 29, Marigold paid $16,300 on accounts payable. Check #457 was used. 7. On March 29, Marigold paid other operating expenses of $96.500. Check #458 was used. 8. On March 31, Marigold wrote off a receivable of $300 for a customer who declared bankruptcy. 9. On March 31, Marigold sold for $2,110 equipment that originally cost $14.000. It had an estimated life of 5 years and salvage of $1,000 Accumulated depreciation as of December 31, 2021, was $10,400 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 $5,000 Outstanding checks #440 3.200 #452 #453 900 N454 5,890 500 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $28,190 Deposits: 1/2/2022. $5,000; 2/2/2022. $15,6003/30/2022, $173,000 193,600 Checks: #452, $500;#453, 5900; #457. $16,300; 1458, 596,500 (114,200) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $107.490 2. Record revenue earned from item 1 above, 3. $25,200 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 3. $25,200 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 $1,500. 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) No. Account Titles and Explanation I Debit Credit Date February 1 : 1. Cash 15600 15600 Unearned Service Revenue 12000 February 1 Equipment 3800 Cash 8200 Accounts Payable Accounts Payable 8200 March 1 4 3 . Patents 12000 12000 March 28 4. 2 180000 083 32 180000 March 294 5. Cash W 173000 WI Accounts Receivable 173000 March 296 6. Accounts Payable 16300 Cash 16300 March 29 7. Other Operating Expenses 96500 96500 March 31 8. Allowance for Doubtful Accounts 300 Accounts Receivable 300 March 31 0 9. Depreciation Expense 650 Accumulated Depreciation Equipment (To record depreciation expense) / / / 2110 11050 / Accumulated Depreciation Equipment E / / / Loss on Disposal of Plant Assets 840 / / 14000 Equipment (To record sale of equipment) eTextbook and Media List of Accounts Attempts: 3 of 6 used Your answer is correct 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 Accounts Receivable 22000 Allowance For Doubtful Accounts Equipment 23,000 Accumulated Depreciation-Equipment 11,000 Land 20000 20000 Buildings Bal 100000 Accumulated Depreciation-Buildings Dal : D 1100 Accounts Payable Accumulated Depreciation Buildings 11000 Accounts Payable 12.300 Common Stock 85000 Retained Earnings 67100 e Textbook and Media List of Accounts Attempts: 6 of 6 used 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 Post the journal entries to the ledger accounts for items 1-9. (Post entries in the order of journal entries presented above. Bal Cash 22,700 Feb. 1 15600 3800 Feb. 1 Mar. 1 12000 173000 Mar. 29 16300 Mar. 31 2110 Mar. 29 96500 Accounts Receivable Bal. 22,000 Mar 29 173000 Mar. 28 180000 Mar 31 : Allowance for Doubtful Accounts 300 Bal. 1.300 Equipment Bal. 23,000 14000 Feb. 1 12000 Accumulated Depreciation Equipment Mar. 31 11050 11,000 Mar 31 650 Accumulated Depreciation-Equipment 11050 Bal. Mar. 31 11,000 650 Land 20,000 Bal. Buildings 100,000 Bal. Accumulated Depreciation-Buildings Bal 11,000 Patents Mar. 14 12000 Accounts Payable 16300 Bal. 12,300 8200 Feb. 1 Unearned Service Revenue Feb. 1 15600 Common Stock Common Stock Bal. 85,000 Retained Earnings 67,100 Service Revenue 180000 Other Operating Expenses Mar. 29 96500 Depreciation Expense Mar. 31 650 Loss on Disposal of Plant Assets Mar. 31 e Textbook and Media List of Accounts Attempts: 2 of 6 used ULLULU lumd=1344748 Prepare an unadjusted trial balance at March 31. Marigold Corp. Trial Balance 3/31/22 Debit Credit Cash 84.810 $ Accounts Receivable 28,700 Allowance for Doubtful Accounts 1,000 Equipment 21.000 Accumulated Depreciation Equipment 600 Land 20,000 Buildings 100,000 / / Accumulated Depreciation 11,000 Patents 12,000 Accounts Payable 4.200 Unearned Service Revenue 15,600 Common Stock 85.000 Common Stock 85,000 Retained Earnings 67,100 Service Revenue 180,000 Other Operating Expenses 96,500 Depreciation Expense 650 Loss on Disposal of Plant Assets 840 Totals 364,500 364,500 e Textbook and Media List of Accounts Attempts: 1 of 6 used Your answer is correct. Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Marigold Corp. Bank Reconciliation 3/31/22 Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Marigold Corp. Bank Reconciliation 3/31/22 Balance Per Bank $ 107,490 Add : Deposits in Transit 2,110 Less : Outstanding Checks ! #440 3.200 i #455 3.800 #456 12.000 #454 5,890 24,890 i Adjusted Balance Per Bank 84,710 Balance Per Books 84,810 Less : Bank Service Charge 100 Adjusted Balance Per Books 84.710 Journalize 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 for the amounts. Round answers to decimal places.es 5,275) No. Date Account Titles and Explanation Debit Credit 1. 3/31/2022 Other Operating Expenses 100 Cash 100 2. 3/31/2022 Unearned Service Revenue Service Revenue 2.600 3. 3/31/2022 Bad Debt Expense Allowance for Doubtful Accounts 4. 3/31/2022 Depreciation Expense Accumulated Depreciation Equipment 5. 3/31/2022 Depreciation Expense Accumulated Depreciation-Buildings 700 6. 3/31/2022 Amortization Expense Patents 7. 3/31/2022 Income Tax Expense 24,665 No. Date Account Titles and Explanation Debit Credit 1. 3/31/2022 Other Operating Expenses 100 I Cash 100 2. 3/31/2022 Unearned Service Revenue Service Revenue 3. 3/31/2022 Bad Debt Expense Allowance for Doubtful Accounts 4. 3/31/2022 Depreciation Expense Accumulated Depreciation Equipment 5.3/31/2022 Depreciation Expense Accumulated Depreciation-Buildings 6. 3/31/2022 Amortization Expense Patents 7. 3/31/2022 Income Tax Expense Income Taxes Payable 24,665 Post entries related to bank reconciliation and all adjusting entries. (Post entries in the order presented in the previous part. Round newers to decimal places, e.g. 5,275) Feb. 1 Mar. 29 Mar. 31 Cash 22.700 Feb. 1 15,600 Mar. 1 173,000 Mar. 29 2.110 Mar. 29 3,800 12.000 16,300 96,500 Bal Accounts Receivable 22,000 Mar. 29 180,000 Mar. 31 173.000 Mar 28 Allowance for Doubtful Accounts 300 Bal Mar 31 Equipment 23.000 Mar. 31 12.000 Accumulated Depreciation Equipment LLOS 11.000 Mar. 31 Accumulated Depreciation-Equipment 11.050 Bal. Mar. 31 11,000 650 Bal. Bal. 100,000 Accumulated Depreciation Patents Mar. 1 12,000 Accounts Payable Mar 29 Accounts Payable 16,300 Bal. Feb. 1 12,300 8,200 Unearned Service Revenue 15,600 Income Taxes Payable Common Stock Bal 85.000 85,000 Retained Earnings Bal. 67,100 67,100 Service Revenue 180,000 Other Operating Expenses Other Operating Expenses 96,500 Depreciation Expense 650 Loss on Disposal of PI 840 Mar 31 840 Amortization Expense Bad Debt Expense Income Tax Expense Depreciation Expense Loss on Disposal of Plant As 840 O SO 19 Mar 31 8400 ce m 21 SI Income Tax Expense Marigold Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2021. is presented below. MARIGOLD CORP. Post-Closing Trial Balance December 31, 2021 Debit Credit Cash $22,700 22,000 Accounts Receivable Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment $1,300 23,000 11,000 Buildings 100,000 Accumulated Depreciation-Buildings 11.000 Land 20,000 Accounts Payable 12,300 Common Stock Retained Earnings 85,06 67.100 $187,700 $187,700 During the first quarter of 2022, the following transactions occurred: 1. On February 1, Marigold collected fees of $15,600 in advance. The company will perform $1,300 of services each month from February 1, 2022. to January 31, 2018 2. On February 1, Marigold purchased computer equipment for $11.400 plus sales taxes of $600. $3,800 cash was paid with the rest on account Check #455 was used. 2. On February 1, Marigold purchased computer equipment for $11.400 plus sales taxes of $600 $3,800 cash was paid with the rest on account. Check #455 was used. 3. On March 1, Marigold acquired a patent with a 10-year life for $12,000 cash. Check #456 was used. 4. On March 28, Marigold recorded the quarter's sales in a single entry. During this period, Marigold had total sales of $180,000 (not including the sales referred to in item 1 above). All of the sales were on account. 5. On March 29, Marigold collected $173,000 from customers on account. 6. On March 29, Marigold paid $16,300 on accounts payable. Check #457 was used. 7. On March 29, Marigold paid other operating expenses of $96.500. Check #458 was used. 8. On March 31, Marigold wrote off a receivable of $300 for a customer who declared bankruptcy. 9. On March 31, Marigold sold for $2,110 equipment that originally cost $14.000. It had an estimated life of 5 years and salvage of $1,000 Accumulated depreciation as of December 31, 2021, was $10,400 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 $5,000 Outstanding checks #440 3.200 #452 #453 900 N454 5,890 500 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $28,190 Deposits: 1/2/2022. $5,000; 2/2/2022. $15,6003/30/2022, $173,000 193,600 Checks: #452, $500;#453, 5900; #457. $16,300; 1458, 596,500 (114,200) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $107.490 2. Record revenue earned from item 1 above, 3. $25,200 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 3. $25,200 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 $1,500. 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) No. Account Titles and Explanation I Debit Credit Date February 1 : 1. Cash 15600 15600 Unearned Service Revenue 12000 February 1 Equipment 3800 Cash 8200 Accounts Payable Accounts Payable 8200 March 1 4 3 . Patents 12000 12000 March 28 4. 2 180000 083 32 180000 March 294 5. Cash W 173000 WI Accounts Receivable 173000 March 296 6. Accounts Payable 16300 Cash 16300 March 29 7. Other Operating Expenses 96500 96500 March 31 8. Allowance for Doubtful Accounts 300 Accounts Receivable 300 March 31 0 9. Depreciation Expense 650 Accumulated Depreciation Equipment (To record depreciation expense) / / / 2110 11050 / Accumulated Depreciation Equipment E / / / Loss on Disposal of Plant Assets 840 / / 14000 Equipment (To record sale of equipment) eTextbook and Media List of Accounts Attempts: 3 of 6 used Your answer is correct 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 Accounts Receivable 22000 Allowance For Doubtful Accounts Equipment 23,000 Accumulated Depreciation-Equipment 11,000 Land 20000 20000 Buildings Bal 100000 Accumulated Depreciation-Buildings Dal : D 1100 Accounts Payable Accumulated Depreciation Buildings 11000 Accounts Payable 12.300 Common Stock 85000 Retained Earnings 67100 e Textbook and Media List of Accounts Attempts: 6 of 6 used 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 Post the journal entries to the ledger accounts for items 1-9. (Post entries in the order of journal entries presented above. Bal Cash 22,700 Feb. 1 15600 3800 Feb. 1 Mar. 1 12000 173000 Mar. 29 16300 Mar. 31 2110 Mar. 29 96500 Accounts Receivable Bal. 22,000 Mar 29 173000 Mar. 28 180000 Mar 31 : Allowance for Doubtful Accounts 300 Bal. 1.300 Equipment Bal. 23,000 14000 Feb. 1 12000 Accumulated Depreciation Equipment Mar. 31 11050 11,000 Mar 31 650 Accumulated Depreciation-Equipment 11050 Bal. Mar. 31 11,000 650 Land 20,000 Bal. Buildings 100,000 Bal. Accumulated Depreciation-Buildings Bal 11,000 Patents Mar. 14 12000 Accounts Payable 16300 Bal. 12,300 8200 Feb. 1 Unearned Service Revenue Feb. 1 15600 Common Stock Common Stock Bal. 85,000 Retained Earnings 67,100 Service Revenue 180000 Other Operating Expenses Mar. 29 96500 Depreciation Expense Mar. 31 650 Loss on Disposal of Plant Assets Mar. 31 e Textbook and Media List of Accounts Attempts: 2 of 6 used ULLULU lumd=1344748 Prepare an unadjusted trial balance at March 31. Marigold Corp. Trial Balance 3/31/22 Debit Credit Cash 84.810 $ Accounts Receivable 28,700 Allowance for Doubtful Accounts 1,000 Equipment 21.000 Accumulated Depreciation Equipment 600 Land 20,000 Buildings 100,000 / / Accumulated Depreciation 11,000 Patents 12,000 Accounts Payable 4.200 Unearned Service Revenue 15,600 Common Stock 85.000 Common Stock 85,000 Retained Earnings 67,100 Service Revenue 180,000 Other Operating Expenses 96,500 Depreciation Expense 650 Loss on Disposal of Plant Assets 840 Totals 364,500 364,500 e Textbook and Media List of Accounts Attempts: 1 of 6 used Your answer is correct. Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Marigold Corp. Bank Reconciliation 3/31/22 Prepare a bank reconciliation in good form. (List items that increase balance as per bank first.) Marigold Corp. Bank Reconciliation 3/31/22 Balance Per Bank $ 107,490 Add : Deposits in Transit 2,110 Less : Outstanding Checks ! #440 3.200 i #455 3.800 #456 12.000 #454 5,890 24,890 i Adjusted Balance Per Bank 84,710 Balance Per Books 84,810 Less : Bank Service Charge 100 Adjusted Balance Per Books 84.710 Journalize 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 for the amounts. Round answers to decimal places.es 5,275) No. Date Account Titles and Explanation Debit Credit 1. 3/31/2022 Other Operating Expenses 100 Cash 100 2. 3/31/2022 Unearned Service Revenue Service Revenue 2.600 3. 3/31/2022 Bad Debt Expense Allowance for Doubtful Accounts 4. 3/31/2022 Depreciation Expense Accumulated Depreciation Equipment 5. 3/31/2022 Depreciation Expense Accumulated Depreciation-Buildings 700 6. 3/31/2022 Amortization Expense Patents 7. 3/31/2022 Income Tax Expense 24,665 No. Date Account Titles and Explanation Debit Credit 1. 3/31/2022 Other Operating Expenses 100 I Cash 100 2. 3/31/2022 Unearned Service Revenue Service Revenue 3. 3/31/2022 Bad Debt Expense Allowance for Doubtful Accounts 4. 3/31/2022 Depreciation Expense Accumulated Depreciation Equipment 5.3/31/2022 Depreciation Expense Accumulated Depreciation-Buildings 6. 3/31/2022 Amortization Expense Patents 7. 3/31/2022 Income Tax Expense Income Taxes Payable 24,665 Post entries related to bank reconciliation and all adjusting entries. (Post entries in the order presented in the previous part. Round newers to decimal places, e.g. 5,275) Feb. 1 Mar. 29 Mar. 31 Cash 22.700 Feb. 1 15,600 Mar. 1 173,000 Mar. 29 2.110 Mar. 29 3,800 12.000 16,300 96,500 Bal Accounts Receivable 22,000 Mar. 29 180,000 Mar. 31 173.000 Mar 28 Allowance for Doubtful Accounts 300 Bal Mar 31 Equipment 23.000 Mar. 31 12.000 Accumulated Depreciation Equipment LLOS 11.000 Mar. 31 Accumulated Depreciation-Equipment 11.050 Bal. Mar. 31 11,000 650 Bal. Bal. 100,000 Accumulated Depreciation Patents Mar. 1 12,000 Accounts Payable Mar 29 Accounts Payable 16,300 Bal. Feb. 1 12,300 8,200 Unearned Service Revenue 15,600 Income Taxes Payable Common Stock Bal 85.000 85,000 Retained Earnings Bal. 67,100 67,100 Service Revenue 180,000 Other Operating Expenses Other Operating Expenses 96,500 Depreciation Expense 650 Loss on Disposal of PI 840 Mar 31 840 Amortization Expense Bad Debt Expense Income Tax Expense Depreciation Expense Loss on Disposal of Plant As 840 O SO 19 Mar 31 8400 ce m 21 SI Income Tax Expense
