Question
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 | ||||||||||||||
| ||||||||||||||||
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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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
2nd Edition
0470848634, 978-0470848630
