Selected transactions completed by Komett Company during its first fiscal year ended December 31, 20YB, were as foliows: 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; miscellaneous administrative expense, 5890 . Apr. 14 Purchased $31,300 of merchandise on account, terms, n/30. The perpetual inventory system is used to account for inventory. May 13 Paid the invoice of April 14. 17 Received cash from dally cash sales for $21,200. The amount indicated by the cash register was $21,240. Jun. 2 Recelved 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 maturify date. Assume a 360-day year. 24 Frecelved $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.) Sep. 15 Reinstated the Finley account written off on August 24 and recelved $1,400 cash in full payment. (Record as two entries.) Record the following on joumal page 22 . Sep. 15 Purchased land by issuing a $670,000,90-day note to Zahorik Co., Which discounted it at 9%. Assume a 360day year. Oct: 17 Sold offoe 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 accumutated depreciation of $14,000 as of October 17 . Nov. 30 Journalized the monthly payrol for November, based on the following data. 30 Journalized the employer's payroll taxes on the payroll. 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. Required: 1. Joumalize the selected transactions, starting on page 21 of the journat." 2. Based on the following data, prepare a bank reconciliation for December of the cument year:" a. Balance according to the bank statement at December 31,3283,000. 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. 1. A check for $12,700 in payment of an invaice was incorrectly recorded in the accounts as $12,000. "Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. "Add" "or "Deduct." will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger partion of the bank reconciliation, enter in the order 3. Based on the bank reconciliation prepared in (2), joumakze the entry ar entries to be made by Komett Company on page 23 of the joumal. Komett Company uses the Miscellaneous Administrative Expense account for bank service charges." 4. Based on the following selected dafa, journalize the adjusting entries as of December 31,20Y ti on page 23 of the joumat * Estimated uncoliectible accounts at December 31,$16,000, based on an eging of accounts recevable. The batance of Allowance for Doubtful Accounts at December 31 was 32,000 (debit). a. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. b. Prepaid insurance expired during the year, $22,820. c. Omce supplies used during the year, $3,920. d. Depreclation is computed as follows: t. A patent costing $48,000 when acquired on January 2 has a remaining legal tife of 10 years and is expocted to have value for eight years. 9. The cost of mineral rights was 5546,000 . Of the estimated deposit of 910,000 tons of ore, 60,000 tons were mined and sovd during the year. h. Vacation pay expense for December, $10,500. 1. A product warranty was granted beginning December 1 and covering a one-yoar period. The estimated cost is 4 whor saies, which fotaled $1,900,000 in December 1. Wiferest was accrued on the note recelvabie received on October 17. Assume a 360-day year. 'Refer to the chart of accounts for the exact wording of the account thies. CNOW journals do not use anes for journat explanations. Every fine on a joumal page is used for debit or credir entries. CNOW journals wil actomaticaily indent a credit entry when a credlt amount is entered. 5. Based on the following information and the post-closing trial bolance that follows, prepare a batance sheet in report form at December 31 of the current year. Be sure to complete the heading of the balance sheot. Enter asseta in the arder in which they appear in the post-ciosing trial balance. Refer to information given in the problem and the Labeis and Amount Descriptions list for exact wording of text entries. There is no need to include "(current portion)" ar a due date with any account fides. Less" or "Add and a coion (1) will autamaticaty appear if it is required. Enter all amounts as positive numbers: The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability. Vacation pay payable: Current liability Long-term liability 3,360 The unfunded pension liability is a long-term liability. Notes payable: Current liability Long-term liability 630,000 Komett Company Kornett Compary POST-CLOSING TRIAL BALANCE December 31, 20Ys Print ltem Comprehensive Problem 3 instructions | Chart of Accounts _Labots and Amount Descriptions dournal Bank Reconciliation Balance Sheot socrarsecuity laxrayder: 21 Medicare Tax Payable n. Employees Federal Income Tax Payable 23 State Unemployment Tax Payable 74. Federal Unemployment Tax Payable 25 Salaries Payable 26. Accounts Payable 7i Interest Payable 28 Product Warranty Payable. Selected transactions completed by Komett Company during its first fiscal year ended December 31, 20YB, were as foliows: 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; miscellaneous administrative expense, 5890 . Apr. 14 Purchased $31,300 of merchandise on account, terms, n/30. The perpetual inventory system is used to account for inventory. May 13 Paid the invoice of April 14. 17 Received cash from dally cash sales for $21,200. The amount indicated by the cash register was $21,240. Jun. 2 Recelved 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 maturify date. Assume a 360-day year. 24 Frecelved $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.) Sep. 15 Reinstated the Finley account written off on August 24 and recelved $1,400 cash in full payment. (Record as two entries.) Record the following on joumal page 22 . Sep. 15 Purchased land by issuing a $670,000,90-day note to Zahorik Co., Which discounted it at 9%. Assume a 360day year. Oct: 17 Sold offoe 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 accumutated depreciation of $14,000 as of October 17 . Nov. 30 Journalized the monthly payrol for November, based on the following data. 30 Journalized the employer's payroll taxes on the payroll. 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. Required: 1. Joumalize the selected transactions, starting on page 21 of the journat." 2. Based on the following data, prepare a bank reconciliation for December of the cument year:" a. Balance according to the bank statement at December 31,3283,000. 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. 1. A check for $12,700 in payment of an invaice was incorrectly recorded in the accounts as $12,000. "Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. "Add" "or "Deduct." will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger partion of the bank reconciliation, enter in the order 3. Based on the bank reconciliation prepared in (2), joumakze the entry ar entries to be made by Komett Company on page 23 of the joumal. Komett Company uses the Miscellaneous Administrative Expense account for bank service charges." 4. Based on the following selected dafa, journalize the adjusting entries as of December 31,20Y ti on page 23 of the joumat * Estimated uncoliectible accounts at December 31,$16,000, based on an eging of accounts recevable. The batance of Allowance for Doubtful Accounts at December 31 was 32,000 (debit). a. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. b. Prepaid insurance expired during the year, $22,820. c. Omce supplies used during the year, $3,920. d. Depreclation is computed as follows: t. A patent costing $48,000 when acquired on January 2 has a remaining legal tife of 10 years and is expocted to have value for eight years. 9. The cost of mineral rights was 5546,000 . Of the estimated deposit of 910,000 tons of ore, 60,000 tons were mined and sovd during the year. h. Vacation pay expense for December, $10,500. 1. A product warranty was granted beginning December 1 and covering a one-yoar period. The estimated cost is 4 whor saies, which fotaled $1,900,000 in December 1. Wiferest was accrued on the note recelvabie received on October 17. Assume a 360-day year. 'Refer to the chart of accounts for the exact wording of the account thies. CNOW journals do not use anes for journat explanations. Every fine on a joumal page is used for debit or credir entries. CNOW journals wil actomaticaily indent a credit entry when a credlt amount is entered. 5. Based on the following information and the post-closing trial bolance that follows, prepare a batance sheet in report form at December 31 of the current year. Be sure to complete the heading of the balance sheot. Enter asseta in the arder in which they appear in the post-ciosing trial balance. Refer to information given in the problem and the Labeis and Amount Descriptions list for exact wording of text entries. There is no need to include "(current portion)" ar a due date with any account fides. Less" or "Add and a coion (1) will autamaticaty appear if it is required. Enter all amounts as positive numbers: The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability. Vacation pay payable: Current liability Long-term liability 3,360 The unfunded pension liability is a long-term liability. Notes payable: Current liability Long-term liability 630,000 Komett Company Kornett Compary POST-CLOSING TRIAL BALANCE December 31, 20Ys Print ltem Comprehensive Problem 3 instructions | Chart of Accounts _Labots and Amount Descriptions dournal Bank Reconciliation Balance Sheot socrarsecuity laxrayder: 21 Medicare Tax Payable n. Employees Federal Income Tax Payable 23 State Unemployment Tax Payable 74. Federal Unemployment Tax Payable 25 Salaries Payable 26. Accounts Payable 7i Interest Payable 28 Product Warranty Payable