e LulCIL year! A 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) B. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. C. Prepaid insurance expired during the year, $22,820. D. Office supplies used during the year, $3,920. E. Depreciation is computed as follows: Residual Acquisition Useful Life Depreciation Asset Cost Value Date in Years Method Used Buildings $900,000 $ 0 January 2 Double-declining-balance Office Equip. 246,000 26,000 January 3 Straight-line Store Equip. 112,000 12,000 July 1 Straight-line 10 F. 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. G. 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. H. Vacation pay expense for December, $10,500. 1. 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 J. Interest was accrued on the note receivable received on October 17. 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: 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 reconciliation report, select Reconciliation in the Reports section on the left menu bar. To print the report, click on the Print button. Close the report, and close the bank reconciliation window. 8. Based on the bank reconciliation, enter the journal entries to be made into the General Journal. Enter December 31 as the date of each entry. Remember, only changes to this company's cash account need to be accounted for. 9. Display the journal entries. 10. Make corrections to the journal entries, if necessary. 11. When you are comfortable that you have completed all steps of the problem correctly, click on the Check My Work button near the bottom of your screen if it is available, or click on the Submit Assignment for Grading button in the lower right of your screen. The program will then display the results of the grading, indicating accounts in error with a red X. Note that grading in Cengage Learning General Ledger is based on getting each General Ledger account and customer to its correct ending balance, as well as the reconciliation information, rather than grading journal transactions individually. This means that the order of transactions in the general journal is not graded, so you may add transactions and also delete or correct transactions without penalty if you run into difficulty with the assignment. The unfunded pension liability is a long-term liability Notes payable: Current liability $ 70,000 Long-term liability 630,000 Kornett Company Post-Closing Trial Balance December 31, 2015 Debit Balances Credit Balances 4500 243,960 100,000 470,000 16.000 Petty Cash .... .. Cash .. . ********** Notes Receivable.......... Accounts Receivable............ Allowance for Doubtful Accounts.......... Inventory Interest Receivable...... Prepaid Insurance........... Office Supplies... Land. Buildings. Accumulated Depreciation-Buildings.......... Office Equipment ..... Accumulated Depreciation Office Equipment....... Store Equipment Accumulated Depreciation-Store Equipment....... Mineral Rights ... .. Accumulated Depletion................... Patents.. Social Security Tax Payable. Medicare Tax Payable.... 320,000 1,875 45,640 13,400 654925 900,000 36,000 246,000 44,000 112,000 5,000 546,000 30,000 42,000 25,470 4,710 Kornett Company Post-Closing Trial Balance December 31, 2015 Credit Balances Debit Balances 4500 243,960 100,000 470,000 16,000 320,000 1875 45,640 13,400 654,925 900,000 36,000 246,000 44,000 112,000 5,000 Petty Cash ....... ... Cash ........ . Notes Receivable..... Accounts Receivable. Allowance for Doubtful Accounts. Inventory.. Interest Receivable........ Prepaid Insurance......... Office Supplies...... .. Land ... Buildings .. Accumulated Depreciation Buildings........ Office Equipment Accumulated Depreciation Office Equipment... Store Equipment... Accumulated Depreciation Store Equipment....... Mineral Rights .......... Accumulated Depletion........ Patents ........ Social Security Tax Payable.......... Medicare Tax Payable.............. Employees Federal Income Tax Payable.... State Unemployment Tax Payable Federal Unemployment Tax Payable. Salaries Payable......... Accounts Payable ...... ..... Interest Payable............. Product Warranty Payable...... Vacation Pay Payable........... Unfunded Pension Liability ...... Notes Payable..... Common Stock. ....... Retained Earnings.... . 546,000 30,000 42,000 25,470 4710 40,000 270 40 157,000 131,600 28,000 76,000 10,500 50,700 700,000 500,000 1,845,010 3,700,300 3,700,300 e LulCIL year! A 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) B. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. C. Prepaid insurance expired during the year, $22,820. D. Office supplies used during the year, $3,920. E. Depreciation is computed as follows: Residual Acquisition Useful Life Depreciation Asset Cost Value Date in Years Method Used Buildings $900,000 $ 0 January 2 Double-declining-balance Office Equip. 246,000 26,000 January 3 Straight-line Store Equip. 112,000 12,000 July 1 Straight-line 10 F. 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. G. 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. H. Vacation pay expense for December, $10,500. 1. 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 J. Interest was accrued on the note receivable received on October 17. 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: 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 reconciliation report, select Reconciliation in the Reports section on the left menu bar. To print the report, click on the Print button. Close the report, and close the bank reconciliation window. 8. Based on the bank reconciliation, enter the journal entries to be made into the General Journal. Enter December 31 as the date of each entry. Remember, only changes to this company's cash account need to be accounted for. 9. Display the journal entries. 10. Make corrections to the journal entries, if necessary. 11. When you are comfortable that you have completed all steps of the problem correctly, click on the Check My Work button near the bottom of your screen if it is available, or click on the Submit Assignment for Grading button in the lower right of your screen. The program will then display the results of the grading, indicating accounts in error with a red X. Note that grading in Cengage Learning General Ledger is based on getting each General Ledger account and customer to its correct ending balance, as well as the reconciliation information, rather than grading journal transactions individually. This means that the order of transactions in the general journal is not graded, so you may add transactions and also delete or correct transactions without penalty if you run into difficulty with the assignment. The unfunded pension liability is a long-term liability Notes payable: Current liability $ 70,000 Long-term liability 630,000 Kornett Company Post-Closing Trial Balance December 31, 2015 Debit Balances Credit Balances 4500 243,960 100,000 470,000 16.000 Petty Cash .... .. Cash .. . ********** Notes Receivable.......... Accounts Receivable............ Allowance for Doubtful Accounts.......... Inventory Interest Receivable...... Prepaid Insurance........... Office Supplies... Land. Buildings. Accumulated Depreciation-Buildings.......... Office Equipment ..... Accumulated Depreciation Office Equipment....... Store Equipment Accumulated Depreciation-Store Equipment....... Mineral Rights ... .. Accumulated Depletion................... Patents.. Social Security Tax Payable. Medicare Tax Payable.... 320,000 1,875 45,640 13,400 654925 900,000 36,000 246,000 44,000 112,000 5,000 546,000 30,000 42,000 25,470 4,710 Kornett Company Post-Closing Trial Balance December 31, 2015 Credit Balances Debit Balances 4500 243,960 100,000 470,000 16,000 320,000 1875 45,640 13,400 654,925 900,000 36,000 246,000 44,000 112,000 5,000 Petty Cash ....... ... Cash ........ . Notes Receivable..... Accounts Receivable. Allowance for Doubtful Accounts. Inventory.. Interest Receivable........ Prepaid Insurance......... Office Supplies...... .. Land ... Buildings .. Accumulated Depreciation Buildings........ Office Equipment Accumulated Depreciation Office Equipment... Store Equipment... Accumulated Depreciation Store Equipment....... Mineral Rights .......... Accumulated Depletion........ Patents ........ Social Security Tax Payable.......... Medicare Tax Payable.............. Employees Federal Income Tax Payable.... State Unemployment Tax Payable Federal Unemployment Tax Payable. Salaries Payable......... Accounts Payable ...... ..... Interest Payable............. Product Warranty Payable...... Vacation Pay Payable........... Unfunded Pension Liability ...... Notes Payable..... Common Stock. ....... Retained Earnings.... . 546,000 30,000 42,000 25,470 4710 40,000 270 40 157,000 131,600 28,000 76,000 10,500 50,700 700,000 500,000 1,845,010 3,700,300 3,700,300