Based on the following information and the post-closing trial balance that follows, prepare a balance sheet in report form at December 31, 2016. 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. The word Less and colons will appear automatically. Enter all amounts as positive numbers.

The merchandise inventory is stated at cost by the LIFO method.

The product warranty payable is a current liability.

Vacation pay payable:

	Current liability: $7,140
	Long-term liability: 3,360

The unfunded pension liability is a long-term liability.

Notes payable:

	Current liability: $70,000
	Long-term liability: 630,000

Kornett Company

POST-CLOSING TRIAL BALANCE

December 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Petty Cash	4,500.00
2	Cash	243,960.00
3	Notes Receivable	100,000.00
4	Accounts Receivable	470,000.00
5	Allowance for Doubtful Accounts		16,000.00
6	Merchandise Inventory	320,000.00
7	Interest Receivable	1,875.00
8	Prepaid Insurance	45,640.00
9	Office Supplies	13,400.00
10	Land	654,925.00
11	Buildings	900,000.00
12	Accumulated Depreciation-Buildings		36,000.00
13	Office Equipment	246,000.00
14	Accumulated Depreciation-Office Equipment		44,000.00
15	Store Equipment	112,000.00
16	Accumulated Depreciation-Store Equipment		5,000.00
17	Mineral Rights	546,000.00
18	Accumulated Depletion		30,000.00
19	Patents	42,000.00
20	Social Security Tax Payable		25,470.00
21	Medicare Tax Payable		4,710.00
22	Employees Federal Income Tax Payable		40,000.00
23	State Unemployment Tax Payable		270.00
24	Federal Unemployment Tax Payable		40.00
25	Salaries Payable		157,000.00
26	Accounts Payable		131,600.00
27	Interest Payable		28,000.00
28	Product Warranty Payable		76,000.00
29	Vacation Pay Payable		10,500.00
30	Unfunded Pension Liability		50,700.00
31	Notes Payable		700,000.00
32	J. Kornett, Capital		2,345,010.00
33	Totals	3,700,300.00	3,700,300.00

Labels and Amount Descriptions

Amount Descriptions (Bank Reconciliation)

Adjusted balance

Bank service charges

Deposit in transit, not recorded by bank

Error in recording check

NSF check

Outstanding checks

Labels (Balance Sheet)

Current assets

Current liabilities

December 31, 2016

For the Year Ended December 31, 2016

Intangible assets

Long-term liabilities

Property, plant, and equipment

Amount Descriptions (Balance Sheet)

Net cash flows from financing activities

Net cash flows from investing activities

Net cash flows from operating activities

Net increase (decrease) in cash

Total assets

Total current assets

Total current liabilities

Total liabilities

Total long-term liabilities

Total liabilities and owners equity

Total property, plant, and equipment

CHART OF ACCOUNTS

Kornett Company

General Ledger

	ASSETS
110	Petty Cash
111	Cash
112	Notes Receivable
113	Accounts Receivable
114	Allowance for Doubtful Accounts
115	Merchandise Inventory
121	Interest Receivable
122	Prepaid Insurance
123	Office Supplies
130	Land
131	Buildings
132	Accumulated Depreciation-Buildings
133	Office Equipment
134	Accumulated Depreciation-Office Equipment
135	Store Equipment
136	Accumulated Depreciation-Store Equipment
137	Mineral Rights
138	Accumulated Depletion
141	Patents

	LIABILITIES
211	Social Security Tax Payable
212	Medicare Tax Payable
213	Employees Federal Income Tax Payable
214	State Unemployment Tax Payable
215	Federal Unemployment Tax Payable
216	Salaries Payable
221	Accounts Payable
222	Interest Payable
223	Product Warranty Payable
231	Vacation Pay Payable
232	Unfunded Pension Liability
241	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
611	Gain on Sale of Office Equipment

	EXPENSES
510	Cost of Merchandise Sold
521	Repairs Expense
522	Rent Expense
523	Insurance Expense
524	Bad Debt Expense
525	Office Supplies Expense
529	Cash Short and Over
551	Sales Salaries Expense
552	Office Salaries Expense
553	Payroll Tax Expense
554	Vacation Pay Expense
555	Pension Expense
561	Product Warranty Expense
571	Depreciation Expense-Buildings
572	Depreciation Expense-Office Equipment
573	Depreciation Expense-Store Equipment
574	Depletion Expense
575	Amortization Expense-Patents
581	Miscellaneous Selling Expense
582	Miscellaneous Administrative Expense
710	Interest Expense
711	Loss on Sale of Office Equipment