| 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
