Comprehensive Accounting Cycle Review 9-2 (Part Level Submission) Ayayai Corp. p

Question

Comprehensive Accounting Cycle Review 9-2 (Part Level Submission) Ayayai Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is presented below.

can you please solve the last part of the problem each part has to do with the next one. This question is a series of steps that needs to be solved in order to figure out the next part. I need the last part of this solved the one with all the empty blanks please.

Comprehensive Accounting Cycle Review 9-2 (Part Level Submission) Ayayai Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is presented below AYAYAI CORP Post-Closing Trial Balance December 31, 2016 Debit $22,000 22,000 Credit Cash Accounts Receivable Allowance for Doubtful Accounts Equipment Accumulated Depreciation-Equipment Buildings Accumulated Depreciation-Buildings Land Accounts Payable Common Stock Retained Earnings $1,200 15,000 10,000 100,000 10,000 20,000 12,000 80,000 65,800 $179,000 $179,000 During the first quarter of 2017, the following transactions occurred 1. On February 1, Ayayai collected fees of $6,000 in advance. The company will perform $500 of services each month from February 1, 2017, to January 31, 2018 2. on February 1, Ayayai purchased computer equipment for $7,875 plus sales taxes of $525, $2,625 cash was paid with the rest on account. Check #455 was used 3. on March 1, Ayayai acquired a patent with a 10-year life for $8,400 cash. Check #456 was used

Explanation / Answer

(f1)

Workings:

No. Date Account Titles and Explanation Debit Credit 1 3/31/2017 Other operating expenses 100 Cash 100 (To record bank service charge) 2 3/31/2017 Unearned service revenue 1000 Service revenue ($500 x 2) 1000 (To record revenue earned) 3 3/31/2017 Bad debts expense 1298 Allowance for doubtful accounts 1298 [($22000 x 4%) + ($6900 x 22%) - $1100] (To record bad debts expense) 4 3/31/2017 Depreciation expense 375 Accumulated depreciation-equipment 375 [($8400 - $900)/5 x 2/12] + [$5000/10 x 3/12] (To record depreciation expense) 5 3/31/2017 Depreciation expense [($100000 - $10000)/30 x 3/12] 750 Accumulated depreciation-buildings 750 (To record depreciation expense) 6 3/31/2017 Amortization expense ($8400/10 x 1/12) 70 Patent 70 (To record amortization expense on patent) 7 3/31/2017 Income tax expense ($42157 x 30%) 12647 Income tax payable 12647 (To record income tax expense)

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