Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y8, were as follows 1 Journalize the selected transactions Assume 360 days per year Jan 3 Issued a check to establish a petty cash fund of $4,500 Description Debit Credit Accounts PayableAccounts ReceivableCashNo Entry RequiredPetty CashPetty Cash Accounts PayableAccounts ReceivableCashNo Entry RequiredPetty CashCash 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, $880 Description Debit Credit Accounts PayableCashNo Entry RequiredOffice SuppliesPetty CashOffice Supplies CashCash Short and OverMiscellaneous Selling ExpenseNo Entry RequiredPetty CashMiscellaneous Selling Expense Accounts PayableCashMiscellaneous Administrative ExpenseNo Entry RequiredPetty CashMiscellaneous Administrative Expense CashCash Short and OverNo Entry RequiredOffice SuppliesPetty CashCash Apr 14 Purchased $31,300 of merchandise on account, terms, n 30 The perpetual inventory system is used to account for inventory Description Debit Credit Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchases Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchases May 13 Paid the invoice of April 14 Description Debit Credit Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchasesAccounts Payable Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchasesCash May 17 Received cash from daily cash sales for $21,200 The amount indicated by the cash register was $21,240 Description Debit Credit Accounts ReceivableCashNo Entry RequiredNotes ReceivableSalesCash Accounts ReceivableCash Short and OverNo Entry RequiredSalesSales DiscountsCash Short and Over Accounts ReceivableCashCash Short and OverNo Entry RequiredSalesSales June 2 Received a 60 day, 8 note for $180,000 on the Ryanair account Description Debit Credit Accounts Receivable RyanairCashInterest RevenueNo Entry RequiredNotes ReceivableNotes Receivable Accounts Receivable RyanairCashInterest RevenueNo Entry RequiredNotes ReceivableAccounts Receivable Ryanair Aug 1 Received amount owed on June 2 note plus interest at the maturity date Description Debit Credit Accounts Receivable RyanairCashInterest RevenueNo Entry RequiredNotes ReceivableCash Accounts Receivable RyanairCashInterest ReceivableNo Entry RequiredNotes ReceivableNotes Receivable Accounts Receivable RyanairCashInterest RevenueNo Entry RequiredNotes PayableInterest Revenue Aug 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 ) Description Debit Credit Accounts Receivable FinleyBad Debt ExpenseCashNo Entry RequiredSalesCash Accounts Receivable FinleyAllowance for Doubtful AccountsBad Debt ExpenseNo Entry RequiredSalesAllowance for Doubtful Accounts Accounts Receivable FinleyAllowance for Doubtful AccountsCashNo Entry RequiredSalesAccounts Receivable Finley Sept 15 Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment Description Debit Credit Accounts Receivable FinleyAllowance for Doubtful AccountsCash Short and OverNo Entry RequiredNotes ReceivableAccounts Receivable Finley Allowance for Doubtful AccountsCashNo Entry RequiredNotes ReceivableSalesAllowance for Doubtful Accounts Allowance for Doubtful AccountsBad Debt ExpenseCashNo Entry RequiredNotes ReceivableCash Accounts Receivable FinleyBad Debt ExpenseCashNo Entry RequiredNotes ReceivableAccounts Receivable Finley Sept 15 Purchased land by issuing a $670,000, 90 day note to Zahorik Co , which discounted it at 9 Description Debit Credit Accounts PayableCashLandNo Entry RequiredNotes PayableLand Accounts PayableCashInterest ExpenseNo Entry RequiredNotes PayableInterest Expense Accounts PayableInterest ExpenseLandNo Entry RequiredNotes PayableNotes Payable 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 Description Debit Credit Accounts PayableCashNo Entry RequiredNotes PayableOffice EquipmentCash Depreciation Expense Office Equip Gain on Sale of Office EquipmentNo Entry RequiredNotes ReceivableOffice EquipmentNotes Receivable Accumulated Depreciation Office Equip Depreciation Expense Office Equip No Entry RequiredNotes PayableOffice Equipment Accumulated Depreciation Office Equip Depreciation Expense Office Equip Gain on Sale of Office EquipmentLoss on Sale of Office EquipmentNo Entry RequiredOffice EquipmentLoss on Sale of Office Equipment Accumulated Depreciation Office Equip Gain on Sale of Office EquipmentNo Entry RequiredNotes ReceivableOffice EquipmentOffice Equipment Nov 30 Journalized the monthly payroll for November, based on the following data Salaries Deductions Sales salaries $135,000 Federal 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 Nov 30 Journalized the employer's payroll taxes on the payroll Description Debit Credit CashMedicare Tax PayableNo Entry Required Sales Salaries ExpenseSales Salaries Payable Sales Salaries Expense Cash No Entry RequiredOffice Salaries ExpenseOffice Salaries PayableSocial Security Tax PayableOffice Salaries Expense CashEmployees Federal Income Tax ExpenseEmployees Federal Income Tax PayableNo Entry Required Sales Salaries ExpenseEmployees Federal Income Tax Payable Accounts Payable CashNo Entry RequiredSocial Security Tax ExpenseSocial Security Tax PayableSocial Security Tax Payable Accounts PayableCashMedicare Tax ExpenseMedicare Tax Payable No Entry RequiredMedicare Tax Payable Accounts Payable CashNo Entry RequiredSalaries Payable Sales Salaries ExpenseSalaries Payable Description Debit Credit Cash No Entry RequiredPayroll Tax ExpensePayroll Taxes PayableSocial Security Tax PayablePayroll Tax Expense Cash No Entry RequiredPayroll Taxes PayableSocial Security Tax ExpenseSocial Security Tax PayableSocial Security Tax Payable CashMedicare Tax ExpenseMedicare Tax Payable No Entry RequiredPayroll Taxes PayableMedicare Tax Payable Cash No Entry RequiredPayroll Tax ExpenseState Unemployment Tax ExpenseState Unemployment Tax PayableState Unemployment Tax Payable CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableNo Entry RequiredPayroll Taxes PayableFederal Unemployment Tax Payable Dec 14 Journalized the payment of the September 15 note at maturity Description Debit Credit CashInterest ExpenseNo Entry RequiredNotes PayableNotes ReceivableNotes Payable CashInterest ExpenseNo Entry RequiredNotes PayableNotes ReceivableCash Dec 31 The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee Description Debit Credit CashNo Entry RequiredOffice Salaries ExpensePension ExpenseUnfunded Pension LiabilityPension Expense CashNo Entry RequiredNotes PayablePayroll Tax ExpensePension ExpenseCash No Entry RequiredNotes PayableNotes ReceivablePension ExpenseUnfunded Pension LiabilityUnfunded Pension Liability

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Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y8, were as follows: 1. Journalize the selected transactions. Assume 360

Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y8, were as follows:

1. Journalize the selected transactions. Assume 360 days per year.

Jan. 3: Issued a check to establish a petty cash fund of $4,500.

Description	Debit	Credit
Accounts PayableAccounts ReceivableCashNo Entry RequiredPetty CashPetty Cash
Accounts PayableAccounts ReceivableCashNo Entry RequiredPetty CashCash

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, $880.

Description	Debit	Credit
Accounts PayableCashNo Entry RequiredOffice SuppliesPetty CashOffice Supplies
CashCash Short and OverMiscellaneous Selling ExpenseNo Entry RequiredPetty CashMiscellaneous Selling Expense
Accounts PayableCashMiscellaneous Administrative ExpenseNo Entry RequiredPetty CashMiscellaneous Administrative Expense
CashCash Short and OverNo Entry RequiredOffice SuppliesPetty CashCash

Apr. 14: Purchased $31,300 of merchandise on account, terms, n/30. The perpetual inventory system is used to account for inventory.

Description	Debit	Credit
Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchases
Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchases

May 13: Paid the invoice of April 14.

Description	Debit	Credit
Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchasesAccounts Payable
Accounts PayableCashMerchandise InventoryNo Entry RequiredPurchasesCash

May 17: Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240.

Description	Debit	Credit
Accounts ReceivableCashNo Entry RequiredNotes ReceivableSalesCash
Accounts ReceivableCash Short and OverNo Entry RequiredSalesSales DiscountsCash Short and Over
Accounts ReceivableCashCash Short and OverNo Entry RequiredSalesSales

June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account.

Description	Debit	Credit
Accounts Receivable-RyanairCashInterest RevenueNo Entry RequiredNotes ReceivableNotes Receivable
Accounts Receivable-RyanairCashInterest RevenueNo Entry RequiredNotes ReceivableAccounts Receivable-Ryanair

Aug. 1: Received amount owed on June 2 note plus interest at the maturity date.

Description	Debit	Credit
Accounts Receivable-RyanairCashInterest RevenueNo Entry RequiredNotes ReceivableCash
Accounts Receivable-RyanairCashInterest ReceivableNo Entry RequiredNotes ReceivableNotes Receivable
Accounts Receivable-RyanairCashInterest RevenueNo Entry RequiredNotes PayableInterest Revenue

Aug. 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.)

Description	Debit	Credit
Accounts Receivable-FinleyBad Debt ExpenseCashNo Entry RequiredSalesCash
Accounts Receivable-FinleyAllowance for Doubtful AccountsBad Debt ExpenseNo Entry RequiredSalesAllowance for Doubtful Accounts
Accounts Receivable-FinleyAllowance for Doubtful AccountsCashNo Entry RequiredSalesAccounts Receivable-Finley

Sept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment.

Description	Debit	Credit
Accounts Receivable-FinleyAllowance for Doubtful AccountsCash Short and OverNo Entry RequiredNotes ReceivableAccounts Receivable-Finley
Allowance for Doubtful AccountsCashNo Entry RequiredNotes ReceivableSalesAllowance for Doubtful Accounts
Allowance for Doubtful AccountsBad Debt ExpenseCashNo Entry RequiredNotes ReceivableCash
Accounts Receivable-FinleyBad Debt ExpenseCashNo Entry RequiredNotes ReceivableAccounts Receivable-Finley

Sept. 15: Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%.

Description	Debit	Credit
Accounts PayableCashLandNo Entry RequiredNotes PayableLand
Accounts PayableCashInterest ExpenseNo Entry RequiredNotes PayableInterest Expense
Accounts PayableInterest ExpenseLandNo Entry RequiredNotes PayableNotes Payable

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.

Description	Debit	Credit
Accounts PayableCashNo Entry RequiredNotes PayableOffice EquipmentCash
Depreciation Expense-Office Equip.Gain on Sale of Office EquipmentNo Entry RequiredNotes ReceivableOffice EquipmentNotes Receivable
Accumulated Depreciation-Office Equip.Depreciation Expense-Office Equip.No Entry RequiredNotes PayableOffice Equipment Accumulated Depreciation-Office Equip.
Depreciation Expense-Office Equip.Gain on Sale of Office EquipmentLoss on Sale of Office EquipmentNo Entry RequiredOffice EquipmentLoss on Sale of Office Equipment
Accumulated Depreciation-Office Equip.Gain on Sale of Office EquipmentNo Entry RequiredNotes ReceivableOffice EquipmentOffice Equipment

Nov. 30: Journalized the monthly payroll for November, based on the following data:

Salaries

Deductions

Sales salaries

$135,000

Federal 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

Nov. 30: Journalized the employer's payroll taxes on the payroll.

Description	Debit	Credit
CashMedicare Tax PayableNo Entry Required Sales Salaries ExpenseSales Salaries Payable Sales Salaries Expense
Cash No Entry RequiredOffice Salaries ExpenseOffice Salaries PayableSocial Security Tax PayableOffice Salaries Expense
CashEmployees Federal Income Tax ExpenseEmployees Federal Income Tax PayableNo Entry Required Sales Salaries ExpenseEmployees Federal Income Tax Payable
Accounts Payable CashNo Entry RequiredSocial Security Tax ExpenseSocial Security Tax PayableSocial Security Tax Payable
Accounts PayableCashMedicare Tax ExpenseMedicare Tax Payable No Entry RequiredMedicare Tax Payable
Accounts Payable CashNo Entry RequiredSalaries Payable Sales Salaries ExpenseSalaries Payable

Description	Debit	Credit
Cash No Entry RequiredPayroll Tax ExpensePayroll Taxes PayableSocial Security Tax PayablePayroll Tax Expense
Cash No Entry RequiredPayroll Taxes PayableSocial Security Tax ExpenseSocial Security Tax PayableSocial Security Tax Payable
CashMedicare Tax ExpenseMedicare Tax Payable No Entry RequiredPayroll Taxes PayableMedicare Tax Payable
Cash No Entry RequiredPayroll Tax ExpenseState Unemployment Tax ExpenseState Unemployment Tax PayableState Unemployment Tax Payable
CashFederal Unemployment Tax ExpenseFederal Unemployment Tax PayableNo Entry RequiredPayroll Taxes PayableFederal Unemployment Tax Payable

Dec. 14: Journalized the payment of the September 15 note at maturity.

Description	Debit	Credit
CashInterest ExpenseNo Entry RequiredNotes PayableNotes ReceivableNotes Payable
CashInterest ExpenseNo Entry RequiredNotes PayableNotes ReceivableCash

Dec. 31: The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee.

Description	Debit	Credit
CashNo Entry RequiredOffice Salaries ExpensePension ExpenseUnfunded Pension LiabilityPension Expense
CashNo Entry RequiredNotes PayablePayroll Tax ExpensePension ExpenseCash
No Entry RequiredNotes PayableNotes ReceivablePension ExpenseUnfunded Pension LiabilityUnfunded Pension Liability