Selected transactions completed by Kormett Company during its first fiscal year ended December 31, 20Y5, 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, miscellaneous administrative expense, s880 Apr 14 Purchased $31,300 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory 13 Paid the invoice of Apni 14 atter the discount period had passed May 17 Received cash trom daily cash sales for s21,200. The amount indicated by the cash register was $21,240 Received a 60-day, 8% note for S180 000 on the Ryanar account Jun, 2 Aug 1 Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year 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) Sep 15 Reinstated the Finley account wnitten off on August 24 and received $1,400 cash in full payment Record as two entries.) Record the following on journal page 22 at 9%. Assume Purchased land by issuing a S6 70,000, 90-day note to Zahonk Co , which discounted Sep. 15 a 360-day year Sold ofice equipment in exchange for S 135 000 cash plus receipt of a S 100,000, 90day, 9% note. The Oct 17 equipment 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 Deductions Salaries Sales salaries $135,000 Income tax withheld $39.266 omce salaries 77,250 Social security tax withheld 12,735 $212 250 Medicare tax withheld 3,184 Unemployment Tax rates: 4% 0.8% 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 paid to the pension plan trustee 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 $12000 3. Based on the bank reconcillation prepared in (2). journalize the entry or entries to be made by Kormett 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 deta joumaize the adjusting entries as of December 3t of the current year on page 23 of the journal Estimated uncollectible accounts at December 31 $16.000, 0ased on an aging of accounts receivabie The balance of Allowance for Doubtrur Accounts December 31 was $2.000 (debit) The physical nventory on December 3t indicated an inventory shrinkage of $3,300 Prepaid insurance expired during the year $22 820 Instructions 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year on page 23 of the journ Estimated uncollecthble accounts at December 31, $16,000, based on an aging of accounts recevable. 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 dunng the year, $22,820 Office supplies used durning the year, $3,920 Depreciation is computed as follows ResidualAcquisition Useful Life Depreciation Method Used in Years Asset Cost Value Date s0 January 2 $900,000 Buidings Straight-line Ofice Equip 246,00026000 nuary 3 Store Equip 112000 12.000July 1 10 Straight-line . A patent costing S48 000 when acquired on January 2 has a remaning legalite or 10 years ana epected to have value for 8 years dspost of 910 000 tons of ore 50 000 tons were mined and sold during The cost of mineral rights was $546 000 Of the estimated tne year the year Vecation pay expense for December, $10,500 . A product warranty was granted beginning December 1 and covering a one-year perod The estimated costs 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 eccount tites Round your answers to the nearest dolar 5. Based on the foliliowing information and the post-closing tral 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 tities For those boxes in which you must enter subtracted or negative numbers use a minus sign Round your answers to the nearest dolar The merchandise inventory io stated at cost by the LIFO metho The product warranty payable io a current labity Vacation pay payable Current lability $7 140 Long-term laoity 3 360 The unfunded pension liabilty is a long-term labity Instructions The merchandise inventory is stated at cost by the LIFO method . The product warranty payable is a current liability Vacation pay payable . Current liability: $7,140 Long-term liability 3,360 The unfunded pension liability is a long-term lability . Notes payable Current liability $70,000 Long-term liability 630,000 Kornett Company POST-CLOSING TRIAL BALANCE December 31, 20Y5 DEEIT CREDIT ACCOUNT TITLE Petty Cash 4,500.00 243.960.00 2 Cash 00.000.00 Notes Receivable 470,000.00 Accounts Receivable 16,000.00 lowance for Doubtful Accounts 20,000.00 875.00 terest Receivable 45 64000 Pepaid Insurance 13400.00 654.92500 Instructions 12 Accumulated Depreciation-Buildings 36,000.00 13 Office Equipment 246,000.00 14 Accumulated Depreciation-Office Equipment 44.000.00 15 Store Equipment 112,000.00 s Accumulated Depreciation-Store Equipment 5,000.00 17 Mineral Rights 546,000.00 Accumulated Depletion 30.000.00 18 19 Patents 42,000.00 20 Social Security Tax Payable 25.470.00 21 Medicare Tax Payable 22 Employees Income Tax Payable State Unemployment Tax Payable 23 40 4 Federal Unemployment Tax Payable 25 nsttuCIONS 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 28000.00 28 Product Warranty Payable 76,000.00 2s Vacation Pay Payable 10,500.00 50,700.00 s0 Unfunded Pension Liability 700,000.00 51 Notes Payable 500,000.00 s2 Common Stock 1.845,010.00 3 Retained Earnings 700 500.00 3,700,300.00 4 Totals