Instructions Selected transactions completed by Komett Company during its first fiscal year ended December 31, 2045, were as follows: Jan. 3 Issued a check to establish a petty cash fund of $4,500 Feb. 26 14 Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680, miscellaneous selling expense, S570; miscellaneous administrative expense, $880. Purchased $31,300 of merchandise on account, terms 1/10, 1/30. The perpetual inventory system is used to account for inventory Paid the invoice of April 14 after the discount period had passed. 13 17 Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Received a 60-day, 8% note for $180,000 on the Ryanair account. 2 Aug. Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year. 1 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.) Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. (Record as two entries.) Sep. 15 Sep. 15 Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment (Record as two entries.) Record the following on journal page 22. Sep. 15 Oct. 17 Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Assume a 360-day year. 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 Journalized the monthly payroll for November, based on the following data: Nov. 30 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 MISLIUCIUNIS NOV. 30 Journalized the moniniy payroll Tor November, based on the following Wara: 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 0.8% Amount subject to unemployment taxes: State unemployment $5,000 Federal unemployment 5,000 Required: 1. Journalize the selected transactions, starting on page 21 of the journal." 2. Based on the following data, prepare a bank reconciliation for December of the current year. Refer to the Labels and Amount Descriptions list for exact wording of text entries. Enter all amounts as positive numbers. Balance according to the bank statement at December 31, $283,000. Balance according to the ledger at December 31, $245,410. Checks outstanding at December 31, $68,540. Deposit in transit, not recorded by bank, $29,500. Bank debit memo for service charges, $750. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. 3. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Korner Company on page 23 of the journal. Use the Miscellaneous Administrative Expense account to record bank service charges. Round your answers to the nearest dollar 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year on page 23 of the journal: 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). 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) The physical inventory on December 31 indicated an inventory shrinkage of $3,300. Prepaid insurance expired during the year, $22,820 Office supplies used during the year, $3,920. Depreciation is computed as follows: Residual Value Useful Life in Years Asset $0 Buildings Office Equip Store Equip. Cost $900,000 246,000 112,000 Acquisition Date January 2 January 3 July 1 Depreciation Method Used Double-declining balance Straight-line Straight-line 26,000 12,000 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. The cost of mineral rights was $546,000. Or the estimated deposit of 910.000 tons of ore, 50,000 tons were mined and sold during the year. 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. 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. Vacation pay expense for December, $10,500 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 . Interest was accrued on the note receivable received on October 17. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar 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. Be sure to complete the heading of the balance sheet. Enter assets in the order in which they appear in the post-closing trial balance. Refer to information given in the problem and the Labels and Amount Descriptions list for exact wording of text entries. There is no need to include "current portion)" or a due date with any account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to the nearest dollar The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability Vacation pay payable: Vacation pay payable: Current liability: $7,140 Long-term liability: 3,360 The unfunded pension liability is a long-term Nability Notes payable: Current liability: $70,000 Long-term liability: 630,000 Kornett Company POST-CLOSING TRIAL BALANCE December 31, 2045 ACCOUNT TITLE DEBIT CREDIT Petty Cash 4,500.00 Cash 243,960.00 Notes Receivable 100,000.00 My Work 5 more Check My Work uses remaining. Kornett Company POST-CLOSING TRIAL BALANCE December 31, 2015 ACCOUNT TITLE DEBIT CREDIT Petty Cash 4,500.00 243,960.00 Cash Notes Receivable 100,000.00 Accounts Receivable 470,000.00 Allowance for Doubtful Accounts 16,000.00 Inventory Interest Receivable Prepaid Insurance Office Supplies 320,000.00 1,875.00 45,640.00 13,400.00 654,925.00 Land Buildings 900,000.00 Instructions 11 Buildings 900,000.00 36,000.00 246,000.00 44,000.00 12 Accumulated Depreciation-Buildings 13 Office Equipment 14 Accumulated Depreciation Office Equipment 15 Store Equipment 16 Accumulated Depreciation Store Equipment 17 Mineral Rights 18 Accumulated Depletion 112,000.00 Soome 5,000.00 560 546,000.00 30,000.00 42,000.00 19 Patents 20 Social Security Tax Payable 21 Medicare Tax Payable 22 Employees Income Tax Payable 23 State Unemployment Tax Payable 24 Federal Unemployment Tax Payable 25 Salaries Payable 76 Arants Payable 25,470.00 4,710.00 40,000.00 270.00 40.00 157,000.00 131.600.00 Instructions 22 Employees Income Tax Payable 40,000.00 23 State Unemployment Tax Payable 270.00 24 Federal Unemployment Tax Payable 40.00 25 Salaries Payable 157,000.00 26 Accounts Payable 131,600.00 27 Interest Payable 28,000.00 28 Product Warranty Payable 76,000.00 10,500.00 29 Vacation Pay Payable 30 Unfunded Pension Liability 50,700.00 700,000.00 31 Notes Payable 32 Common Stock 33 Retained Earnings 500,000.00 1,845,010.00 3,700,300.00 3,700,300.00 8 Instructions Selected transactions completed by Komett Company during its first fiscal year ended December 31, 2045, were as follows: Jan. 3 Issued a check to establish a petty cash fund of $4,500 Feb. 26 14 Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680, miscellaneous selling expense, S570; miscellaneous administrative expense, $880. Purchased $31,300 of merchandise on account, terms 1/10, 1/30. The perpetual inventory system is used to account for inventory Paid the invoice of April 14 after the discount period had passed. 13 17 Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Received a 60-day, 8% note for $180,000 on the Ryanair account. 2 Aug. Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year. 1 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.) Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. (Record as two entries.) Sep. 15 Sep. 15 Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment (Record as two entries.) Record the following on journal page 22. Sep. 15 Oct. 17 Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Assume a 360-day year. 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 Journalized the monthly payroll for November, based on the following data: Nov. 30 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 MISLIUCIUNIS NOV. 30 Journalized the moniniy payroll Tor November, based on the following Wara: 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 0.8% Amount subject to unemployment taxes: State unemployment $5,000 Federal unemployment 5,000 Required: 1. Journalize the selected transactions, starting on page 21 of the journal." 2. Based on the following data, prepare a bank reconciliation for December of the current year. Refer to the Labels and Amount Descriptions list for exact wording of text entries. Enter all amounts as positive numbers. Balance according to the bank statement at December 31, $283,000. Balance according to the ledger at December 31, $245,410. Checks outstanding at December 31, $68,540. Deposit in transit, not recorded by bank, $29,500. Bank debit memo for service charges, $750. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. 3. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Korner Company on page 23 of the journal. Use the Miscellaneous Administrative Expense account to record bank service charges. Round your answers to the nearest dollar 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year on page 23 of the journal: 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). 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) The physical inventory on December 31 indicated an inventory shrinkage of $3,300. Prepaid insurance expired during the year, $22,820 Office supplies used during the year, $3,920. Depreciation is computed as follows: Residual Value Useful Life in Years Asset $0 Buildings Office Equip Store Equip. Cost $900,000 246,000 112,000 Acquisition Date January 2 January 3 July 1 Depreciation Method Used Double-declining balance Straight-line Straight-line 26,000 12,000 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. The cost of mineral rights was $546,000. Or the estimated deposit of 910.000 tons of ore, 50,000 tons were mined and sold during the year. 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. 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. Vacation pay expense for December, $10,500 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 . Interest was accrued on the note receivable received on October 17. Assume a 360-day year. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar 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. Be sure to complete the heading of the balance sheet. Enter assets in the order in which they appear in the post-closing trial balance. Refer to information given in the problem and the Labels and Amount Descriptions list for exact wording of text entries. There is no need to include "current portion)" or a due date with any account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to the nearest dollar The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability Vacation pay payable: Vacation pay payable: Current liability: $7,140 Long-term liability: 3,360 The unfunded pension liability is a long-term Nability Notes payable: Current liability: $70,000 Long-term liability: 630,000 Kornett Company POST-CLOSING TRIAL BALANCE December 31, 2045 ACCOUNT TITLE DEBIT CREDIT Petty Cash 4,500.00 Cash 243,960.00 Notes Receivable 100,000.00 My Work 5 more Check My Work uses remaining. Kornett Company POST-CLOSING TRIAL BALANCE December 31, 2015 ACCOUNT TITLE DEBIT CREDIT Petty Cash 4,500.00 243,960.00 Cash Notes Receivable 100,000.00 Accounts Receivable 470,000.00 Allowance for Doubtful Accounts 16,000.00 Inventory Interest Receivable Prepaid Insurance Office Supplies 320,000.00 1,875.00 45,640.00 13,400.00 654,925.00 Land Buildings 900,000.00 Instructions 11 Buildings 900,000.00 36,000.00 246,000.00 44,000.00 12 Accumulated Depreciation-Buildings 13 Office Equipment 14 Accumulated Depreciation Office Equipment 15 Store Equipment 16 Accumulated Depreciation Store Equipment 17 Mineral Rights 18 Accumulated Depletion 112,000.00 Soome 5,000.00 560 546,000.00 30,000.00 42,000.00 19 Patents 20 Social Security Tax Payable 21 Medicare Tax Payable 22 Employees Income Tax Payable 23 State Unemployment Tax Payable 24 Federal Unemployment Tax Payable 25 Salaries Payable 76 Arants Payable 25,470.00 4,710.00 40,000.00 270.00 40.00 157,000.00 131.600.00 Instructions 22 Employees Income Tax Payable 40,000.00 23 State Unemployment Tax Payable 270.00 24 Federal Unemployment Tax Payable 40.00 25 Salaries Payable 157,000.00 26 Accounts Payable 131,600.00 27 Interest Payable 28,000.00 28 Product Warranty Payable 76,000.00 10,500.00 29 Vacation Pay Payable 30 Unfunded Pension Liability 50,700.00 700,000.00 31 Notes Payable 32 Common Stock 33 Retained Earnings 500,000.00 1,845,010.00 3,700,300.00 3,700,300.00 8