Please journalize, bank reconciliation, adjusting entry, balance sheet.
sive Problem 3 Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2048, were as follows: 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 summary of petty cash receipts: office supplies, $1,680; miscellaneous selling expense, $570; miscella- neous administrative expense, $880. Apr. 14. Purchased $31,300 of merchandise on account, terms, n/30. The perpetual in- ventory system is used to account for inventory. May 13. Paid the invoice of April 14. 17. Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. 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. (Continued) W GP Chapter 11 Current Liabilities and Payroll 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 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 paid to the pension plan trustee Instructions 1. Journalize the selected transactions 2. Based on the following data, prepare a bank reconciliation for December of the 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, $68,510, d. Deposit in transit, not recorded by bank, $29.500 e. Bank debit memo for service charges, $750 1. 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 Komett Company 4. Based on the following selected data, Journalize the adjusting entries as of December 31 of the current year 2. Estimated uncollectible accounts at December 31, $16,000, based on an ging 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 animatory shrinkage of 100 Prepaid insurance expired during the year. $22.30 G U
