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sive Problem 3 Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2014, were as follows: Jan. 3. Issued a

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sive Problem 3 Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 2014, 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; miscella- neous administrative expense, $880. Apr. 14. Purchased $31,300 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory May 13. Paid the invoice of April 14 after the discount period had passed. 17. Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. June 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 maturity date. 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 ac- counting for uncollectible receivables.) in full payment. discounted it at 9%. 90-day, 9% note. The equipment had a cost of $320,000 and accumulated Sept.15. Reinstated the Finley account written off on August 24 and received $1,400 cash 15. Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which ,000, Oct. 17. Sold office equipment in exchange for $135,000 cash plus receipt of a $100 depreciation of $64,000 as of October 17. Nov. 30. Journalized the monthly payroll for November, based on the following Deductions Salaries $39,266 12,735 3,184 $135,000 Income tax withheld Sales salaries Office salaries 77.250 Social security tax withheld Medicare tax withheld $212250 Medicare tax $212,250 Unemployment tax rates: State unemployment Federal unemployment 5.4% 0.8% Amount subject to unemployment taxes: State unemployment Federal unemployment $5,000 5,000 Continued)

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