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MARIGOLD CORP. Post-Closing Trial Balance December 31, 2016
		Debit		Credit
Cash		$22,700
Accounts Receivable		22,000
Allowance for Doubtful Accounts				$1,300
Equipment		23,000
Accumulated DepreciationEquipment				11,000
Buildings		100,000
Accumulated DepreciationBuildings				11,000
Land		20,000
Accounts Payable				12,300
Common Stock				85,000
Retained Earnings				67,100
		$187,700		$187,700

During the first quarter of 2017, 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, 2017, 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.
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 quarters 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, 2016, 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, 2016, bank reconciliation is: Deposit in transit: 12/30/2016 $5,000 Outstanding checks #440 3,200 #452 500 #453 900 #454 5,890 The bank statement received for the quarter ended March 31, 2017, is as follows: Beginning balance per bank $28,190 Deposits: 1/2/2017, $5,000; 2/2/2017, $15,600; 3/30/2017, $173,000 193,600 Checks: #452, $500; #453, $900; #457, $16,300; #458, $96,500 (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, 2017, 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%. 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, 2017. 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.)

Journalize entries related to bank reconciliation and al adjusting entries. (Credit account titles are the amounts. Round answers to 0 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 Click if you would like to Show Work for this question Open Show Work Journalize entries related to bank reconciliation and al adjusting entries. (Credit account titles are the amounts. Round answers to 0 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 Click if you would like to Show Work for this question Open Show Work

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