Based on the follovwing information and the post-closing trial balance shown below, prepare a balance sheet in report form at December 31 of the current year:The merchandise inventory is stated at cost by the LIFO method.The product warranty payable is a current liability.Vacation pay payable:Current liability$7,140Long-term liability3,360The unfunded pension liability is a long-term liability.Notes payable:Current liability$70,000Long-term liability630,000Kornett CompanyPost-Closing Trial BalanceDecember 31, 20YSDebitCreditBalancesBalancesPetty Cash4,500Cash243,960Notes Receivable100,000Accounts Receivable470,000Allowance for Doubtful Accounts16,000Merchandise Inventory320,000Interest Receivable1,875Prepaid Insurance45,640Office Supplies13,390Land654,925Buildings900,000Accumulated Depreciation-Buildings36,000Office Equipment246,000Accumulated Depreciation-Office Equipment44,000 Merchandise Inventory320,000Interest Receivable1,875Prepaid Insurance45,640Office Supplies13,390Land654,925Buildings900,000Accumulated Depreciation-Buildings36,000Office Equipment246,000Accumulated Depreciation-Office Equipment44,000Store Equipment112,000Accumulated Depreciation-Store Equipment5,000Mineral Rights546,000Accumulated Depletion30,000Patents42,000Social Security Tax Payable25,470Medicare Tax Payable4,710Employees Federal Income Tax Payable40,000State Unemployment Tax Payable270Federal Unemployment Tax Payable30Salaries Payable157,000Accounts Payable131,600Interest Payable28,000Product Warranty Payable76,000Vacation Pay Payable10,500Unfunded Pension Liability50,700Notes Payable700,000J. Kornett, Capital2,345,0103,700,2903,700,290

Balance sheet: Balance sheet is a list of the balance between all of a company organiization’s…

Answered: arranty payable is a current liability.…

arranty payable is a current liability. mayable: wility $7,140 iability 3,360 pension liability is a long-term liability. wility $70,000 Пability 630,000 Kornett Company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2
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