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a colon (:) will automatically appear if it is required. Enter all amounts as positive numbers. 3. Based on the bank reconcliation prepared in (2), journalize the entry or entries to be made by Kornett Company on page 23 of the journal. Komett Company uses the Miscellaneous Administrative Expense account for bank service charges." 4. Based on the following selected data, journalize the adjusting entries as of December 31,20 Y8 on page 23 of the journal:" Estimated uncollectible accounts at December 31,$16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit). a. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. b. Prepaid insurance expired during the year, $22,820. c. Office supplles used during the year, $3,920. d. Depreciation is computed as follows: 1. A patent costing $48,000 when acquired on January 2 has a romaining legal life of 10 years and is expected to have value for 30 Journalized the employer's payroll taxes on the payroll. Dec. 14 Journalized the payment of the September 15 note at maturity. 31. The cension cost for the vear was 5190.400 . of which 5139.700 was paid to the pension olan trustee. Record the following on joumal page 22. Sep. 15 Purchased land by issuing a $670,000, 90 -day note to Zahorik Co., which discounted it at 9%. Assume a 360 day year. Oct. 17 Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000,90-day, 9% note. The equipment had a cost of $320,000 and accumulated depreciation of $64,000 as of October 17. Nov. 30 Joumalized the monthly payroll for November, based on the following data: Gmail 1. A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for eight years 9. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year: h. Vacation pay expense for December, $10,500. 1. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December. 1. Interest was acenued on the note receivable recelved on October 17. Assume a 360-day year, "Refer to the chart of accounts for the exact wording of the account tities. CNOW journals do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. 5. Based on the following information and the post-closing trial balance that follows, prepare a balance sheet in report form at December 31 of the current year. Be sure to complete the heading of the balance sheet. Enter assets in the order in which they appear in the post-closing trial balance. Refer to information given in the problem and the Labels and Amount Descriptions list for exact wording of text entries. There is no need to include "(current portion)" or a due date with any account tities. Less" or "Add and a colon () will automaticaly appear if it is required. Enter all amounts as positve numbers. Kornett Company POST-CLOSING TRIAL BALANCE December 31,20Y8 31 The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee. Required: 1. Joumalize the selecled transactions, starting on page 21 of the joumal. " 2. Based on the following data, prepare a bank reconclliation for December of the current yoar." a. Balance according to the bank statement at December 31,$283,000. b. Balance according to the ledger at December 31,5245,410. c. Checks outstanding at December 31,568,540. d. Deposit in transit, not recorded by bank, $29,500. e. Bank debit memo for service charges, $750 1. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. "Be sure to complete the statement heading. Refor to the Labeis and Amount Descriptions for the exact wording of text entries. "Add. "or "Deduct' will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconcillotion or the general ledger portian of the bank reconcillation, enter in the order presented in the instructions. Enter all amounts as positive numbers. 3. Besed on the bank reconcilation propared in (2), journalize the entry or entries to be made by Komeit Company an page 23 of the journal. Kornett Company uses the Miscellaneous Administrative Expense account for bank service charges. " Jan. 3 issued a check to establish a petty cash fund of $4,500. Feb. 26 Replenished the petty cash fund, based on the following summary of petty cash receipts: offlce supplies, \$1,680; miscellaneous selling expense, \$570; miscellaneous administrative expense, $880. Apc. 14 Purchased $31,300 of merchandise on account, terms, n/30. The perpetual inventory system is used to account for inventory. May 13 Paid the invoice of April 14. 17 Received cash from dally cash sales for $21,200. The amount indicated by the cash register was $21,240. Jun. 2 Recelved a 60-day, 8% note for $180,000 on the Ryanair account. Aug. 1 Received amount owed on June 2 note plus interest at the maturity date. Assume a 360 -day year. 24 Received $7,600 on the Finley account and wrote otf the remainder owed on a $9,000 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables.) Sep. 15 Reinstated the Finiey account written off on August 24 and received $1,400 cash in full payment. (Record as two entries.)

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