Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is due in a week. Please help! Chapter Review 10-7i Comprehensive Problem 3 Selected transactions completed by Komett Company during its first fiscal year

This is due in a week. Please help!

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Chapter Review 10-7i Comprehensive Problem 3 Selected transactions completed by Komett Company during its first fiscal year ended December 31, 20Y5, were as follows GENERAL LEDEER Jan ssued a check to establish a petty cash fund of $4,500 3. Feb. 26. Replenished the petty cash fund, based on the tollowing summary of petty cash receipts: ofice supplies, 31,680: miscellaneous selling expense,$570; miscelaneouS administrative expense, $880. Apr. Purchased $31,300 of merchandise on account, terms 14. 1/10, n/30. The perpetual inventory system is used to account for inventory May Paid the invaice af April 14 after the discount period had 13. passed. 17 Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21.240 June Received a 60-day, 8% note for $180,000 on the Ryanair 2. account Aug Received amount awed on June 2 note, plus interest at 1. the maturity date. 24. Receved $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts receivable balance (The allowance methad is used in accounting for uncoliectble receivables.) Sept Reinstated the Finley account written off on August 24 15 and received $1,400 cash in full payment 15 Purchased land by issuing a $870,000, 90-day note to Zahorik Co., which discounted it at 9%. 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 Jouna zed the monthly payroll for November, based on 30 the following data Salaries Deductions Sales salaries 135,000 ncome tax withheld Social security tax withheld 39,266 12,735 3,184 Office salaries 77250 212.250 Medicare tax withheld Unemployment tax rates State unemployment Federal unemployment 5.4% 0.8% Amount subject to unemployment taxes State unemployment Federal unemployment 5,000 5,000 30 Joumalized the employer's payroll taxes on the payroll. Dec. Journalized the payment of the September 15 note at 14. 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. 2. Based on the following data, prepare a bank reconciliation for December of the current year: .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 $12,000 3. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Komett Company. Use the Miscellaneous Administrative Expense account to record bank service charges. 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year. A. Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit). B. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. C. Prepaid insurance expired during the year, $22,820. D. Office supplies used during the year, S3,920. E. Depreciation is computed as follows: Useful Residual Acquisition Life in Method Asset Cost Value Date Years Used Buildings s900,000 $S$ January 2 ouble- decirning balance Office 246,000 26,000 January 3 5 Straight-line Equip. Store 2000 12,000 July 1 Equip. 10 Straight-line Kornett Company Post-Closing Trial Balance December 31, 20YS Petty Cash. 243,960 Notes Receivable Accounts Receivable.... 470,000 Prepaid Insurance... 45,640 13.400 Office Supplies Buildings Office Equipment 112,000 Medicare Tax Payable Employees Federal Income Tax Payable . . . State Unemployment Tax Payable 4710 .. . . . . . . . Accounts Payable 131,600 Product Warranty Payable... Vacation Pay Payable . Unfunded Pension Liability... Common Stock 3,700,300 3.700300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Creative And Innovative Auditing

Authors: Jeffrey Ridley

1st Edition

1472474627, 9781472474629

More Books

Students also viewed these Accounting questions