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	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 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 Goods 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

Labels and Amount Descriptions

Amount Descriptions (Bank Reconciliation)
Adjusted balance
Bank service charges
Deposit in transit
Error in recording check
NSF check
Outstanding checks
Labels (Balance Sheet)
Common stock
Current assets
Current liabilities
December 31, 20Y5
For the Year Ended December 31, 20Y5
Intangible assets
Long-term liabilities
Property, plant, and equipment
Retained earnings
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 stockholders equity
Total property, plant, and equipment
Total stockholders' equity

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: Useful Life in Years Asset Cost Buildings Office Equip Store Equip. $900,000 246,000 112,000 Residual Value $0 26,000 12,000 Acquisition Date January 2 January 3 July 1 Depreciation Method Used Double-declining-balance Straight-line 10 Straight-line 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 8 years. 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. 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 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 liability: $7,140 Long-term liability: 3,360 The unfunded pension liability is a long-term liability Notes payable: Current liability: $70,000 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: Useful Life in Years Asset Cost Buildings Office Equip Store Equip. $900,000 246,000 112,000 Residual Value $0 26,000 12,000 Acquisition Date January 2 January 3 July 1 Depreciation Method Used Double-declining-balance Straight-line 10 Straight-line 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 8 years. 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. 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 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 liability: $7,140 Long-term liability: 3,360 The unfunded pension liability is a long-term liability Notes payable: Current liability: $70,000