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Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, were as follows Jan. 3 issued a check to establish

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Selected transactions completed by Kornett 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, mscellaneous adminstrative expense, $880 : Apr. 14 Purchased $31,300 of merchandse on account, terms 1/10,n/30. The perpetual inventory system is used to account for imventory. May 13 Paid the irwoice of April 14 after the discount period had passed 17 Recerved cash from daily cash sales for $21,200. The amount indicated by the cash fegster was $21,240 Jun. 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 matunty 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 batance. (The allowance method is used in accounting for uncollectible receivables ) Sep 15 Reinstated the Finley account witten 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 Zahork Co., which discounted it at 9%. Assume a 360 -day year. 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 . Nov. 30 Journalized the monthly payroll for November, based on the following data: 30 Journalized the employer's payroll taxes on the payroll. Dec. 14 Joumalized 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. Joumalize the selected transactions, starting an page 21 of the joumal. 2. Based on the following data, prepare a bank reconcilation for December of the cument year. Aofor to the Labels and Amount Descriptions ist for exact wording of fext entres. Enter all amounts as positve numbers - Balance according to the bank stafement af Docember 31,$283,000 - Balance according to the ledper at December 31,$245,410 - Checks outstanding at December 31,$68,540. - Depost in transt, not recorded by bank, $29,500 - Bank debir meno for service charpes, $750 - A check for $12,700 in payment of an invoce was incorrectly recorded in the accounts as $12,000 3. Based on the bank reconcilabon prepared in (2). jounafize the entry or entres to be made by Kornetf Company on page 23 of the joumal Use the Mascellaneous Adminatrative Expense account to record bank serwice charges. Found your answers to the nearvat dollar 4. Based on the following selected dafa, joumakize the adfusting entries as of December 31 of the current year on page 23 of the joumal: - Estimated uncolectible accounts at December 31,$16,000, based on an aging of accounts recelvable. The balance of Allowance for Doubtul Accounts at December 31 was $2,000 (debil). - The physical imventory on December 3t indicated an inventary shrinkage of $3,300 - Prepaid insurance expired during the year, $22,820 - Office supplies used during the year, $3,920 - Depreciation is computed as follows: - A patent costing 548,000 when acquired an January 2 has a remaining legal /fe of 10 years and is expected to have value for 8 years. - The cost of mineral rights was $546,000 of the estimated deposit of 910,000 tons 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 coverng a one-year peniod. The estimaled cost is 4% of sales, which totaled $1,900,000 in December - Interest was accriced on the note recervable received on October 17 . Assume a 360-day year - Refer to the Chart of Accounts for exact wording of account tules Round your answers to the nearest dollar 5. Based on the following information and the post-ciasing trial 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 triaf balance. Refer to information given in the probiem and the Labels and Amount Descriptions list for exact wording of text entres. There is no need to include "current portion)" ar a due date with any account tities. For those boxes in which you must enter subtracted ar negative numbers use a minus sign. Round your answers to the nearest dolar - The merchandise inventory is stated at cost by the LIFO method - The product warranty payable is a current llabilty - Vacabon pay payable. Current liabiaty $7,140 Long-term liabitry: 3,360 - The untunded pension liabulty is a long-term labulity - Notes payabie. Current mability: $70,000 Long-term kabilty; 630,000 Instructions \begin{tabular}{|c|c|c|c|} \hline & & & \\ \hline 12 & Accumulated Depreciation-Buildings & & 36,000.00 \\ \hline 15 & Office Equipment & 246,000.00 & \\ \hline 14 & Accumulated Depreciation-Office Equipment & & 44,000.00 \\ \hline is & Store Equipment & 112,000.00 & \\ \hline 16 & Accumulated Depreciation-Store Equipment & & 5,000.00 \\ \hline 17 & Mineral Rights & 546,000.00 & \\ \hline 18 & Accumulated Depletion & & 30,000.00 \\ \hline 19 & Patents & 42,000.00 & \\ \hline 20 & Social Security Tax Payable & & 25,470.00 \\ \hline n & Medicare Tax Payable & & 4,710.00 \\ \hlinen & Employees Income Tax Payable & & 40,000,00 \\ \hline 33 & State Unemployment Tax Payable & & 270.00 \\ \hline 34 & Federat Unemployment Tax Payable & & 40.00 \\ \hline 25 & Salaries Payable & & 157,000.00 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline 24 & 4 Federal Unemployment Tax Payable & & 40.00 \\ \hline is & Salaries Payable & & 157,000.00 \\ \hline 26 & 6 Accounts Payable & & 131,600.00 \\ \hline 27 & Interest Payable & & 28,000.00 \\ \hline 28 & Product Warranty Payable & & 76,000.00 \\ \hline 29 & Vacation Pay Payable & & 10,500.00 \\ \hline 30 & Unfunded Pension Liability & & 50,700.00 \\ \hline 31 & Notes Payable & & 700,000.00 \\ \hline 32 & Common Stock & & 500,000.00 \\ \hline 33 & Retained Earnings & 1 & 1,845,010.00 \\ \hline 34 & Totals & 3,700,300.00 & 3,700,300.00 \\ \hline \end{tabular}

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