Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2016, were as follows: Jan 3 Issued a check to establish a petty cash fund of $4,500 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 Feb. 26 Apr 14 Purchased $31.300 of merchandise on account, n/30 The perpetual inventory system is used to account for inventory Paid the invoice of April 14 May13 17 Received cash from daily cash sales for $21.200. The amount indicated by the cash register was $21.240 Jun 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. 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 written off on August 24 and received $1.400 cash in full payment Record as two entries.) Record the following on journal page 22 Sep 15 Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Assume Oct. 17 Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000, 90-day. 9% note. The Nov. 30 Journalized the monthly payroll for November, based on the following data a 360-day year. equipment had a cost of $320,000 and accumulated depreciation of $64,000 as of October 17 Salaries Sales salaries $135,000 Office salaries 77,250 $212.25 Deductions Income tax withheld Social security tax withheld Medicare tax withheld $39. 266 12,735 3 184 Social security tax withheld 12.735 Medicare tax withheld 3.184 Unemployment Tax rates: State unemployment Federal unemployment Amount subject to unemployment taxes State unemployment Federal unemployment 5 4% o 8% $5,000 5,000 0Journalized the employer's payroll taxes on the payrol 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. Journalize the selected transactions, starting on page 21 of the journal . Required: 1. Journalize the selected transactions, starting on page 21 of the journal 2. Based on the following data, prepare a bank reconciliation for December 2016. Refer to the Labols and Amount Descriptions ist for exact wording of text entries. Enter all amounts as positive numbers. Balance according to the bank staternent at December 31, $283.000 Balance according to the ledger at December 31, $245,410 Checks outstanding at December 31, S68 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 accounte as $12.000 3 Based on the bank reconciliation prepared in (2), journaize the entry or entries to be made by Kornett Company on page 23 of the journal Kornett Company uses the Miscellaneous Administrative Expense account for bank service charges 4 Based on the following selected data, journalize the adjusting entries as of December 31, 2016 on page 23 of the journal . Estimated uncollectible accounts at December 31, 516.000 based on an aging of accounts receivable. The balance of Alowance for Doubtful Accounts at December 31 was $2,000 (debt) The physical inventory on December 31 indicated an inventory shrinkage of $3.300 Prepaid insurance expired dunng the year $22 820 . The physical inventory on Decembor t andicated an inventory shnnkage of S3,3o - Prepaid insurance expired during the year, $22,820 Office supplies used during the year, $3,920 . Depreciation is computed as follows Residual AcquisitionUseful Life Asset Buildings Office Equip Store Equip Value Cost $900.00 246,000 26,000 January 3 112.00012.000 Date in Years Depreciation Method Used Double-declining-balance Straight-line Straight-line So January 2 50 July 1 10 . A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for eight yeara . The cost of mineral rights was $546,000 Of the eatimated depoait of 910,000 tona of ore, 50,000 tons were mined and sold during the year . Vacation pay expense for December, $10, 500 A product warranty was granted beginning December 1 and covering a one-year perod totaled $1,900,000 in December The estimated cost is 4% of sales, which . Interest was aocrued on the note recervable received on October 17 Assume a 360-dav vear vacation pay expense tor December, 370,D0U -A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 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 account titles. 5. Based on the following information and the post-closing trial balance that follows, prepare a balance sheet in report form at December 31, 2016. Be sure to complete the heading of the balance sheet Enter assets in the order in which they appear in the post-closing tral balance Refer to information given in the problem and the Labels and Amount Descriptions liot for exact wording of text entries. Thore is no need to include (current portion)" or a due date with any account titles. The word Less and colons wil appear automatically Enter all amounts as positive numbers . The merchandise inventory is stated at cost by the LIFO method . The product warranty payable is a current iability Vacation pay payable Current liability $7, 140 Long-term liability 3,360 . The unfunded pension tiability is a long-term tiability Notes payable Current liability $70.000 POST-CLOSING TRIAL BALANCE December 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Petty Cash 2 Cash 3 Notes Receivable 4 Accounts Recelvable 5 Allowance for Doubtful Accounts 6 Merchandise Inventory 7 Interest Receivable 4,500.00 243,960.00 100,000.00 470,000.00 16,000.00 Prepaid Insurance 9 Office Supplies 10 Land 1s Buildings 12 Accumulated Depreciation-Buildings 20,000.00 1,875.00 45,640.00 13,400.00 654,925.00 900,000.00 36,000.00 Office Equipment 246.000.00 13 Office Equipment 14 Accumulated Depreciation-Office Equipment 15 Store Equipment 16 Accumulated Depreciation-Store Equipment 17 Mineral Rights 18 Accumulated Depletion 19 Patents 20 Social Security Tax Payable 21 Medicare Tax Payable 22 Employees Federal Income Tax Payable as State Unemployment Tax Payable 24 Federal Unemployment Tax Peyable 25 Salaries Payable 26 Accounts Payable ,, ::: Interest Payable 44,000.00 112,000.00 5,000.00 546,000.00 30,000.00 42,000.00 25,470.00 4,710.00 40,000.00 270.00 40.00 157,000.00 131.600.00 28.000.00 76,000.00 Product Warranty Payable