Comp. Prob 3 Kornett Co.

Part 1, 2, 3, 4, &5

Kornet Company Dec. 31 20Y5...

Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20YS, were as follows: 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select No entry required from the dropdown and leave the amount boxes blank. For a compound transaction if an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500. Date Description Debit Credit Jan. 3 Petty Cash 4,500 Cash 4,500 Feb. 26: Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, s1,680; miscellaneous selling expense, $570 miscellaneous administrative expense, $880. Date Description Debit Credit Feb. 26 Office Supplies 1,680 Miscellaneous Selling Expense Miscellaneous Administrative Expense Cash 3,130 Apr. 14 Purchased $31,300 of merchandise on account, terms 1/10, n 30. The perpetual inventory system is used to account for inventory. Date Description Debit Credit Apr 14 Inventory 30,987 30,987 Accounts Payable May 13: Paid the invoice of April 14 after the discount period had passed. Date Description Debit Credit 30,987 May 13 Accounts Payable Sales Cash 31,300 May 17: Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Description Debit Credit Date May 17 Cash 21,200 Cash short and over 40 21,240 Sales