following dan 30 Chapter 11 Current Liabilities and Payroll Deductions 30. Journalized the monthly payroll for November, based on the follow 539266 12.735 3,184 $135.000 Income tax withheld Social security tax withheld Medicare tax withheld 5.4% 700 was paid to the Sales salaries 77,250 Office salaries 5212 250 Unemployment tax rates: State unemployment 0.6% Federal unemployment Amount subject to unemployment taxes $5,000 State unemployment 5.000 Federal unemployment 30. Journalized the employer's payroll taxes on the payroll. Dec. 14. Journalized the payment of the September 15 note at maturity. 31. The pension cost for the year was $190, 400, of which $139,700 was pension plan trustee. Instructions 1. Journalize the selected transactions. 2. Based on the following data, prepare a bank reconciliation for Decemb. current year: a. Balance according to the bank statement at December 31, $283,000. b. Balance according to the ledger at December 31, $245,410. c. Checks outstanding at December 31, $68,540. d. Deposit in transit, not recorded by bank, $29.500. e. Bank debit memo for service charges, $750. f. A check for $12,700 in payment of an invoice was incorrectly recorder accounts as $12,000. or December of 3. Based on the bank reconciliation prepared in (2), journalize the entry or ento made by Kornett Company. 4. Based on the following selected data, journalize the adjusting entries as of De of the current year: a. Estimated uncollectible accounts at December 31, $16,000, based on a accounts receivable. The balance of Allowance for Doubtful Accounts at D was $2,000 (debit). b. The physical inventory on December 31 indicated an inventory shrinka 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 Asset Acquisition Useful Life del Cost Value a nd the unfunded pension liability) 1. Journalize the transactions 2. Journalize the following adjusting entries on December 31 2. Salaries accrued: sales salaris officers salaries, The payroll taxes are immaterial and are not accrued. b. Vacation pay. $13,350. hes, $4,275, officers salaries $2.175. office salaries, $825. ensive Problem 3 Selected transactions completed by Kornett Company dun December 31, 2018, were as follows: by kornett Company during its first fiscal year ended Jan. 3. Issued a check to establish a petty cash fund of $4,500. Feb. 26. Replenished the petty cash fund based on the following sun receipts: office supplies. $1.690 miscellaneous selling expense neous administrative expense, $880. Apr. 14. Purchased $31.300 of merchandise on count terms, n/30. The per ventory system is used to account for inventory. May 13. Paid the invoice of April 14. for 200 The amount indicated by the 17. Received cash from daily cash cash register was $21,240. the following summary of petty cash selling expense, $570; miscella- account, terms, n/30. The perpetual in- June 2. Received a 60-day, 8% note for $180,000 on the Ryanair account. Aug. 1. Received amount owed on June 2 note plus interest at the maturity date. 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.) Sept. 15. Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. 15. Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. 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 October 17. (Continue
