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Comprehensive Problem 3 Instructions Chart of Accounts Labels and Amount Descriptions Journal Bank Reconciliation Instructions Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2045, were as follows: Jan. 3 Feb. 26 Apr. 14 May 13 17 Issued a check to establish a petty cash fund of $4,500. Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680, miscellaneous selling expense, S570; miscellaneous administrative expense, $880. Purchased $31,300 of merchandise on account, terms 1/10,n/30. The perpetual inventory system is used to account for inventory. Paid the invoice of April 14 after the discount period had passed. Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240 Received a 60-day, 8% note for $180,000 on the Ryanair account. Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year. Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables.) Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment (Record as two entries.) Jun. 2 Aug 1 24 Sep. 15 Record the following on journal 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 Check My Work Comprehensive Problem 3 Instructions Chart of Accounts Labels and Amount Descriptions Journal Bank Reconciliation Instructions Record the following on journal page 22 Sep. 15 Oct. 17 Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Assume a 360-day year. Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000, 90-day, 9% noto. The equipment had a cost of $320,000 and accumulated depreciation of $64,000 as of October 17. Journalized the monthly payroll for November, based on the following data: Nov. 30 Salaries: Deductions: Sales salaries $135,000 Income tax withheld $39,266 Office salaries 77,250 Social security tax withheld 12,735 $212,250 Medicare tax withheld 3,184 Unemployment Tax rates: State unemployment 5.4% Federal unemployment 0.8% Amount subject to unemployment taxes: Check My Work All work saved. Email Instructor Save a Instructions Chart of Accounts Labels and Amount Descriptions Journal Bank Reconciliation L Instructions No uujee uu Laes. State unemployment $5,000 Federal unemployment 5,000 30 Dec. 14 Journalized the employer's payroll taxes on the payroll. Journalized the payment of the September 15 note at maturity. The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee. 31 Required: 1. Journalize the selected transactions, starting on page 21 of the journal." 2. Based on the following data, prepare a bank reconciliation for December of the current year. Refer to the Labels and Amount Descriptions list for exact wording of text entries. Enter all amounts as positive numbers. Balance according to the bank statement at December 31, $283,000. Balance according to the ledger at December 31, $245,410. . Checks outstanding at December 31, $68,540. Deposit in transit, not recorded by bank, $29,500. Bank debit merno for service charges, $750. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. 3. Based on the bank reconciliation prepared in (2).journalize the entry or entries to be made by Kornett Company on page 23 of the journal. Use the Miscellaneous Administrative Expense account to record bank service charges. Round your answers to the nearest dollar Check My Work Instructions Chart of Accounts Labels and Amount Descriptions urnal Bank Reconcion Instructions 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year 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) The physical inventory on December 31 indicated an inventory shrinkage of $3,300. Prepaid insurance expired during the year. $22,820. Office supplies used during the year, $3,920. Depreciation is computed as follows: Residual Useful Life Acquisition Date Asset Cost Value in Years $900,000 $0 January 2 50 Buildings Office Equip. Depreciation Method Used Double-declining-balance Straight-line Straight-line 246,000 26,000 January 3 5 112,000 Store Equip. 12,000 July 1 10 A patent costing S48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years. The cost of mineral rights was $546,000. Or the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Vacation pay expense for December, $10,500. 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 Interest was accrued on the note receivable received on October 17. Assume a 360-day year. *Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar Comprehensive Problem 3 Instructions Chart of Accounts Labels and Amount Descriptions Journal Bank Reconciliation Instructions 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 titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to the nearest dollar The merchandise inventory is stated at cost by the LIFO method The product warranty payable is a current liability Vacation pay payable: Current Nabilly: $7,140 Long-term liability: 3,360 The unfunded pension Nally is a long-term Nability Notes payable: Current Kabilly: $70,000 Long-term Nabilty: 630,000 Komett Company POST-CLOSING TRIAL BALANCE December 31, 2015 DEBIT CREDIT ACCOUNT TITLE al ACUUU LUCIA Bank Reco Instructions Kornett Company POST-CLOSING TRIAL BALANCE December 31, 2045 ACCOUNT TITLE DEBIT CREDIT 1 Petty Cash 4,500.00 2 Cash 243,960.00

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