Question

PLEASE help me with instruction A, B, C,D. if you can, you can do all al them!

Credit $ 1.200 Aberkonkie Corporation Post-Closing Trial Balance December 31, 2021 Debit Cash $ 24,300 Accounts Receivable 22.400 Allowance for Doubtful Accounts Equipment 20.000 Accumulated Depreciation Equipment Buildings 100,000 Accumulated Depreciation-Buildings Land 20,000 Accounts Payable Common Stock Retained Earnings 15,000 15.000 12.120 90.000 53.130 S186,700 During the first quarter of 2022, the following transaction occurred: 1. On February 1. Aberkonkie collected fees of $12.000 in advance. The company will perform $1,000 of services each month from February 1, 2022. to January 31, 2023. 2. On February 1. Aberkonkie 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. 3. On March 1, Aberkonkie acquired a patent with a 10-year life for 59.600 cash. Check 456 was used. 4. On March 28, Aberkonkie recorded the quarter's sales in a single entry. During this period, Aberkonkie had total sales of $140,000 (not including the sales referred to in item 1 above). All of the sales were on account. $. On March 29, Aberkonkie collected $133,000 from customers on account 6/ On March 29, Aberkonkie paid $16,370 on accounts payable. Check 457 was used. On March 29, Aberkonkie paid other operating expenses of $97,525. Check 458 was used. 8. On March 31. Aberkonkie wrote off a receivable of $200 for a customer who declared bankruptcy. 9. On March 31. Aberkonkie sold for $1.620 equipment that originally cost $11.00. 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 $5.000 Outstanding checks 1440 3.446 6452 333 1453 865 454 5.845 The bank statement received for the quarter ended March 31, 2022, is as follows: Beginning balance per bank $ 29,787 Deposits: 1/2/2022, 55.000; 2/2/2022, $12,000; 3/30/2022, $133.000 150,000 Checks: 8452, 5333: #453, $865; 457. $16,370 458, 597,525 (115,093) Debit memo: Bank service charge (record as operating expense) (100) Ending bank balance $ 64,594 2. Record revenue earned from item 1 above. 3. $26,000 of accounts receivable at March 31, 2022, are not past due yet. The bad debt percentage for these is 46. The remaining balance of accounts receivable is past due. The bad debt percentage for these is 23.75%. 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 pur- chased 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.

Answer 1

Cash
To balance b/d	24300	By Equipment	3000
To revenue	2000	By Patent	9600
To advance from customer	10000	By Accounts Payable	16370
To Accounts Receivable	133000	By Operating expense	97525
To Equipment	1620	By balance c/d	44425
	170920		170920
Accounts Receivable
To balance b/d	22400	By Cash	133000
To Revenue	140000	By Bad Debt	200
		By balance c/d	29200
	162400		162400
Allowance for Doubtful Accounts
To balance c/d	1200	By balance b/d	1200
	1200		1200
Equipment
To balance b/d	20000	By accumulated depreciation	8500
To Cash	3000	By Cash	1620
To Accounts Payable	6600	By Loss on sale of Equipment	880
		By balance c/d	18600
	29600		29600
Accumulated Depreciation - Equipment
To Equipment	8500	By balance b/d	15000
To balance c/d	7000	By Depreciation	500
	15500		15500
Retained Earnings
To balance c/d	53130	By balance b/d	53130
	53130		53130
Advance from customer
To balance c/d	10000	By Cash	10000
	10000		10000
Patent
To Cash	9600	By balance c/d	9600
	9600		9600
Revenue
		By Cash	2000
		By Accounts Receivable	140000

Buildings
To balance b/d	100000	By balance c/d	100000
	100000		100000
Accumulated Depreciation - Building
To balance c/d	15000	By balance b/d	15000
	15000		15000
Land
To balance b/d	20000	By balance c/d	20000
	20000		20000
Accounts Payable
To cash	16370	By balance b/d	12370
To balance c/d	2600	By Equipment	6600
	18970		18970
Common Stock
To balance c/d	90000	By balance b/d	90000
	90000		90000
Operating expense
To Cash	97525
Bad Debts
To Accounts Receivable	200
Depreciation
To Accumulated Depreciation	500
Loss on sale of Equipment
To Equipment	880

Date	Particulars	$	$
		Debit	Credit
01-Feb	Cash A/C ….................... Dr.	12000
	Revenue A/C …................................................... Cr. (Revenue for Feb and Mar)		2000
	Advance from customer A/C …................... Cr.		10000
	(Advance collected from customers and revenue for the month of Feb and March accounted for)
01-Feb	Equipment A/C …............. Dr.	9600
	Cash A/C …...................................................... Cr.		3000
	Accounts Payable A/C …................................. Cr.		6600
	(Equipment purchase and payment done through check #455)
01-Mar	Patent A/C …................................ Dr.	9600
	Cash A/C …...................................................... Cr.		9600
	(Patent Acquired)
28-Mar	Accounts Receivable A/C ….................... Dr.	140000
	Revenue A/C …................................................... Cr.		140000
	(Sales for Q1 recorded)
29-Mar	Cash A/C …..................................... Dr.	133000
	Accounts Receivable A/C …..................... Cr.		133000
	(Cash received from customers accounted for)
29-Mar	Accounts Payable A/C …................................. Dr.	16370
	Cash A/C …................................................................... Cr.		16370
	(Payment done to vendor through check #458 accounted for)
29-Mar	Operating Expense A/C …................................. Dr.	97525
	Cash A/C …................................................................... Cr.		97525
	(Payment of operating expense done through check #458)
31-Mar	Bad Debt A/C ….............................. Dr.	200
	Accounts Receivable A/C …..................... Cr.		200
	(Bad debt accounted for)
31-Mar	Depreciation A/C …........................ Dr. (W.N=1)	500
	Accumulated Depreciation - Equipment A/C …............. Cr.		500
	(Depreciation expense on equipment recorded)
31-Mar	Accumulated Depreciation - Equipment A/C …............. Dr. (8000+500)	8500
	Cash A/C. ….......................................................................... Dr.	1620
	Loss on sale of Equipment A/C …...................................... Dr. (W.N = 2)	880
	Equipment A/C …....................................................................... Cr.		11000
	(Sale of equipment accounted for)
W.N = 1	Computation of Depreciation on Equipment Sold
		$
	Cost of Equipment	11000
	Salvage Value	1000
	Depreciable Value of Equipment	10000
	Estimated life of the Assets	5 years
	Depreciation Method	Straight Line
	Depreciation amount per year (10000/5)	2000
	Depreciation for Q1 (2000/12)*3	500
W.N = 2	Computation of profit/loss on equipment sold
	WDV of Equipment after adjusting depreciation	2500
	(11000-8500)
	Sale Price of Equipment	1620
	Loss on sale of Equipment	-880