rehensive Problem 3 al assets, Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 569,300 20Y5, were as follows: Jan 3. Issued a check to establish a petty cash fund of S4.500. Feb. 26. Replenished the petty cash fund, based on the following summary of petty cash receipts office supplies. $1,680, miscellaneous selling expense,5570. miscellaneous administrative expense, $880. Apr. 14. Purchased 531,300 of merchandise on account termsn /30. The perpetual inventory 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 57,600 on the Finley account and wrote of the remainder owed on a 59.000 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 51 400 cash in full payment. 15. Purchased land by issuing a $670,000. 90 day note to Zaborik Co which discounted it at 99 Oct 17. Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000, 90-day, 99 note. The equip ment had a cost of $320,000 and accumulated depreciation of 564,000 as of October 17, Nov. 30, Journalized the monthly payroll for November, based on the following data Salaries Deductions Sales salaries 5135.000 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 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 cata, prepare a bank reconciliation for December of the current year: Balance according to the bank statement at December 31, 5283.000. Balance according to the ledo at December 31,524,410, 0.89 Dec 14 umed the other 31. The pension cout Instructions 1. Journaline the selected transactions 2. Based on the following data preparebank reconciliation for December of the current year Sego CHAPTER 7. Parall 7-11 semimonthly period of October, The company's Pennsylvania employer complete the information worksheet needed for the first account number is 000-0-3300, its EIN is 00-0000660, its filing pass word is GBPCOM, and its telephone number is (215) 555-9559. No. 3 Prepare the payroll for the last pay period of October from Time Clerk October 23 LO 1 PROJECT AUDIT TEST Net Paid $12.376.89 Report Nos 40 and 41. The proper procedure in recording the payroll follows: Complete the payroll register. In as much as only a portion of the payroll register sheet was used in recording the October 9 payroll, the October 23 payroll should be recorded on the same sheet to save space. On the first islank ruled line after the October 9 payroll, insert-Payday October 23 -- For Period Ending October 17,20..." On the following lines, record the payroll information for the last pay date of October. When recording succeeding payrolls, continue to conserve space by recording two payroll on cach separate payroll register sheet. The workers in the plant (Boro and Ryur) are paid time and a half for any hours worked over eight cach workday and for work on Saturdays and are paid twice the regular hourly rate for work on Sundays or holidays. With this pay period, the cumulative earnings of several employees exceed the taxable income base set up by FUTA and SUTA. This factor must be considered in preparing the payroll register and in computing the employer's payroll taxes. Refer to each employee's camnings record to see the amount of cumulative earnings. Time Clerk's Report No 40 PAY POINTS Even though they are not on the time deck recort Remember to pay the Desident, sales manager sales representatives and supervisor For the Week Ending October 10, 20- LO 2 Maintain employees anings TICON Time Record Time Time Employee S M T W T F S Worked Lost Bonno, A. V... B 8 8 8 8 44 hrs. Ford, C.L... 4 8 8 8 8 36 hrs. 4 hrs Russell, VA 8 8 8 8 8 40 hrs. Ryan, N. A 8 8 8 88 Student 8 8 8 36 hrs. 8 Williams. R V... 8 8 8 8 40 h. Timelou on account of death of a churgad apsimet Sual personal en dieren for time lot. 40 hr. Time Lost Employee Time Clerk's Report No. 41 For the Week Ending October 17, 20.- Time Record Time MT S WT F Worked S 8 8 8 8 8 40 h 8 8 8 40 hrs. 8 8 8 8 8 40 hrs. 8 8 48 hrs 4 8 8 36 hrs. 8 8 8 8 40 hrs. Bonno, AV Ford, C.L. Russell. V. A Ryan, N. A Student.. Williams, R. V. S ance For collected, union des withheld, and net amount paid, 7-12 CHET Payroll Accounting 2030 Make the transfer from Cash to Payroll Cash them Pour the required information from the payroll register to each Record in the journal the sales Wax withheld, of the cotal payroll, and peat oployee's camins record LO 3 me and post paroland re Record in the journal the employer's payroll taxes and the liabilities and post to the proper leder account The entry required to record the October 23 payroll is the same as that to record the October payroll, except it is necessary to record the bility for the amount withheld from the employees wastes to pay their part of the group insurance premium. The amount withheld should be recorded as a credit to Group Insurance Premium Collected. created, pou to the appropriate ledger accounts. November 4 V No.4 Deposit with the state of Pennsylvania the amount of state income taxes withheld from the October 23 payroll and complete information worksheet No.5 Virginia Russell completed a new Form W 4. changing the number of withholding allowances to 2. Change Russell's earnings record her mar ital status has not changed No. 6 Thomas). Sokowski completed a new Form W-4 showing that his man ital status changed to single and that the number of withholding allow ances remains at 2. Change Sokowski's earnings record accordingly, No. 7 Dewey Mann completed a new Form W 4. leaving his marital status is married but dropping the number of withholding allowances to 0. Change Mann's earnings record accordingly. PROJECT AUDIT TEST November 6 No. 8 Pay the treasurer of the union the amount of union dues withheld during the month of October. PAY POINTS The employees Penyana State Unemployment SUTA) calculated 0.00061 on the total wages of each employee. There is notable wage it on the employees portion of the PAY POINTS Be sure to deduct 3 premium for each $1.000 of group Insurance carried by each employee at payday of each month Net Paid $12,180.03 Time Lost Time Clerk's Report No. 42 For the Week Ending October 24, 20- Time Record Employee SMT WT F S Bonno. A V. 8 8 8 8 8 Ford. CL 8 8 8 8 8 Russell, VA 8 8 8 8 6 Ryan. N. A. 8 8 8 8 Student 8 8 8 8 4 Williams, R V.. 8 8 8 7 8 "Tinelow.count of family function deduct 2 hours pay Time In cause of tartines, dedact hour's pay Time Worked 40 hrs. 40 hrs 38 hrs. 40 hrs. 36 hrs. 39 hrs. 2 hr. 1 ht" CHAPTER 7.13 Time Clerk's Report No. 43 For the Week Ending October 31, 20-- Employee Time Record S M T W T Bonn, A. V F Ford, CL 8 8 Russell, V. A 8 S 8 Ryan, NA 8 Student 8 8 8 Williams, R. V. 8 8 Time World Time List S 10 lurs 40 hari 40 36 hins 40 h No. 9 PAY POINTS Prepare the payroll for the first pay period in November from. Time Clerk Record this payroll at the top of the second payroll register sheet Note: Virginia Russell worked only 38 hours in the week ending Ostrov ber 24. Therefore, compute her pay for that week by multiplying 38 by $15.00 (her hourly rate), Ruth Williams worked only 19 hours in the week ending October 24. Therefore, compute her pay for that werk by multiplying 39 by S15.29 (her hourly rate). Also, record the employer's payroll taxes Make changes in order bayer to Nos and PROJECT AUDIT V Net Paid $ 1.494 November 13 No. 10 Because of her excessive tardiness and absenteeism during the year, the company discharged Ruth Williams today. For the week ending Novem- ber 7, she was late a total of six hours and for this week, she missed two full days and was late two hours on another day. In lieu of two weeks! notice, Williams was given two full weeks' pay ($1,223.08). Along with her dismissal pay ($1,223,08), she was paid for the week ending Novem- ber 7 (34 hours, or $519.86) and the days worked this current week (22 hours, or $336,38). The total pay for the two partial weeks is $856.24. Record a separate payroll register (on one line) to show Williams's total earnings, deductions, and net pay. The two weeks' dismissal pay is subject to all payroll taxes. Include dismissal pay with the total earnings but do not show the hours in the Time Record columns. Use the tax table for the biweekly payroll period for the total gross pay ($2,079.32) of Williams. The deduction for group insurance premiums is $14.40. In the Time Record column, make a note of Williams's discharge as of this date. Indicate the payroll check number used to prepare the final check for Williams, When posting to the earnings record, make a notation of Wil- liams's discharge on this date. Prepare the journal entries to transfer the net cash and to record Wil. liams's final pay and the employer's payroll taxes. Post to the ledger accounts. Use the blank Form W-2 on page 7-59. Box "a" should be left blank, since Glo-Brite Paint Company does not use a control number to identify PAY POINT Prepare a Wage and Statement Form W- given to Williams individual Forms W-2