Comprehensive Problem 3 Part 1 Selected transactions completed by Kornett Company during its first fiscal year ended Dec 31, 20Y8, 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 Description Debit Credit Petty Cash Cash Feb 26 Replenished the petty cash fund, based on the following summary of petty cash receipts office supplies, $1,680 miscellaneous selling expense, $570 miscellaneous administrative expense, $880 Description Debit Credit Office Supplies Miscellaneous Selling Expense Miscellaneous Administrative Expense Cash Apr 14 Purchased $31,300 of merchandise on account, terms, n 30 The perpetual inventory system is used to account for inventory Description Debit Credit Merchandise Inventory Accounts Payable May 13 Paid the invoice of Apr 14 Description Debit Credit May 17 Received cash from daily cash sales for $21,200 The amount indicated by the cash register was $21,240 Description Debit Credit June 2 Received a 60 day, 8 note for $180,000 on the Ryanair account Description Debit Credit Aug 1 Received amount owed on June 2 note plus interest at the maturity date Description Debit Credit Aug 24 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 ) Description Debit Credit Sept 15 Reinstated the Finley account written off on Aug 24 and received $1,400 cash in full payment Description Debit Credit Sept 15 Purchased land by issuing a $670,000, 90 day note to Zahorik Co , which discounted it at 9 Description Debit Credit Oct 17 Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000, 90 day, 9 note The equipment had a cost of $320,000 and accumulated depreciation of $64,000 as of Oct 17 Description Debit Credit Nov 30 Journalized the monthly payroll for November, based on the following data 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 6 Amount subject to unemployment taxes State unemployment $5,000 Federal unemployment 5,000 Nov 30 Journalized the employer's payroll taxes on the payroll Description Debit Credit Description Debit Credit Dec 14 Journalized the payment of the Sept 15 note at maturity Description Debit Credit Dec 31 The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee Description Debit Credit

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Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year ended Dec. 31, 20Y8, were as follows: 1. Journalize

Comprehensive Problem 3 Part 1:

Selected transactions completed by Kornett Company during its first fiscal year ended Dec. 31, 20Y8, 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.

Description	Debit	Credit
Petty Cash
Cash

Feb. 26: Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680; miscellaneous selling expense, $570; miscellaneous administrative expense, $880.

Description	Debit	Credit
Office Supplies
Miscellaneous Selling Expense
Miscellaneous Administrative Expense
Cash

Apr. 14: Purchased $31,300 of merchandise on account, terms, n/30. The perpetual inventory system is used to account for inventory.

Description	Debit	Credit
Merchandise Inventory
Accounts Payable

May 13: Paid the invoice of Apr. 14.

Description	Debit	Credit

May 17: Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240.

Description	Debit	Credit

June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account.

Description	Debit	Credit

Aug. 1: Received amount owed on June 2 note plus interest at the maturity date.

Description	Debit	Credit

Aug. 24: 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.)

Description	Debit	Credit

Sept. 15: Reinstated the Finley account written off on Aug. 24 and received $1,400 cash in full payment.

Description	Debit	Credit

Sept. 15: Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%.

Description	Debit	Credit

Oct. 17: Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000, 90-day, 9% note. The equipment had a cost of $320,000 and accumulated depreciation of $64,000 as of Oct. 17.

Description	Debit	Credit

Nov. 30: Journalized the monthly payroll for November, based on the following data:

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	0.6%
Amount subject to unemployment taxes:
State unemployment	$5,000
Federal unemployment	5,000