Comprehensive Problem 3 Part 5: Note: You must complete parts 1, 2, 3, and 4 of this comprehensive problem before completing part 5. Based on the following information and the post-closing trial balance that follows, 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 $7,140 Long-term liability 3,360 The unfunded pension liability is a long-term liability. Notes payable: Current liability $ 70,000 Long-term liability 630,000 Kornett Company Post-Closing Trial Balance December 31, 20Y5 Account Title Debit Balances Credit Balances Petty Cash 4,500 Cash 243,960 Notes Receivable 100,000 Accounts Receivable 470,000 Allowance for Doubtful Accounts 16,000 Inventory 320,000 Interest Receivable 1,875 Prepaid Insurance 45,640 Office Supplies 13,400 Land 654,925 Buildings 900,000 Accumulated Depreciation—Buildings 36,000 Office Equipment 246,000 Accumulated Depreciation—Office Equipment 44,000 Store Equipment 112,000 Accumulated Depreciation—Store Equipment 5,000 Mineral Rights 546,000 Accumulated Depletion 30,000 Patents 42,000 Social Security Tax Payable 25,470 Medicare Tax Payable 4,710 Employees Federal Income Tax Payable 40,000 State Unemployment Tax Payable 270 Federal Unemployment Tax Payable 40 Salaries Payable 157,000 Accounts Payable 131,600 Interest Payable 28,000 Product Warranty Payable 76,000 Vacation Pay Payable 10,500 Unfunded Pension Liability 50,700 Notes Payable 700,000 Common Stock 500,000 Retained Earnings 1,845,010 3,700,300 3,700,300 Kornett Company Balance Sheet December 31, 20Y5 Assets Current assets: $fill in the blank 2 fill in the blank 4 fill in the blank 6 $fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 fill in the blank 18 fill in the blank 20 Total current assets $fill in the blank 21 Property, plant, and equipment: $fill in the blank 23 $fill in the blank 25 fill in the blank 27 fill in the blank 29 $fill in the blank 31 fill in the blank 33 fill in the blank 35 $fill in the blank 37 fill in the blank 39 fill in the blank 41 $fill in the blank 43 fill in the blank 45 fill in the blank 47 Total property, plant, and equipment fill in the blank 48 Intangible assets: fill in the blank 50 Total assets $fill in the blank 51 Liabilities Current liabilities: $fill in the blank 53 fill in the blank 55 fill in the blank 57 fill in the blank 59 fill in the blank 61 fill in the blank 63 fill in the blank 65 fill in the blank 67 fill in the blank 69 fill in the blank 71 fill in the blank 73 Total current liabilities $fill in the blank 74 Long-term liabilities: $fill in the blank 76 fill in the blank 78 fill in the blank 80 Total long-term liabilities fill in the blank 81 Total liabilities $fill in the blank 82 Stockholders’ Equity $fill in the blank 84 fill in the blank 86 Total stockholders’ equity fill in the blank 87 Total liabilities and stockholders’ equity $fill in the blank 88

Comprehensive Problem 3 Part 5: Note: You must complete parts 1, 2, 3, and 4 of this comprehensive problem before completing part 5. Based on the following information and the post-closing trial balance that follows, 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 $7,140 Long-term liability 3,360 The unfunded pension liability is a long-term liability. Notes payable: Current liability $ 70,000 Long-term liability 630,000 Kornett Company Post-Closing Trial Balance December 31, 20Y5 Account Title Debit Balances Credit Balances Petty Cash 4,500 Cash 243,960 Notes Receivable 100,000 Accounts Receivable 470,000 Allowance for Doubtful Accounts 16,000 Inventory 320,000 Interest Receivable 1,875 Prepaid Insurance 45,640 Office Supplies 13,400 Land 654,925 Buildings 900,000 Accumulated Depreciation—Buildings 36,000 Office Equipment 246,000 Accumulated Depreciation—Office Equipment 44,000 Store Equipment 112,000 Accumulated Depreciation—Store Equipment 5,000 Mineral Rights 546,000 Accumulated Depletion 30,000 Patents 42,000 Social Security Tax Payable 25,470 Medicare Tax Payable 4,710 Employees Federal Income Tax Payable 40,000 State Unemployment Tax Payable 270 Federal Unemployment Tax Payable 40 Salaries Payable 157,000 Accounts Payable 131,600 Interest Payable 28,000 Product Warranty Payable 76,000 Vacation Pay Payable 10,500 Unfunded Pension Liability 50,700 Notes Payable 700,000 Common Stock 500,000 Retained Earnings 1,845,010 3,700,300 3,700,300 Kornett Company Balance Sheet December 31, 20Y5 Assets Current assets: $fill in the blank 2 fill in the blank 4 fill in the blank 6 $fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 fill in the blank 16 fill in the blank 18 fill in the blank 20 Total current assets $fill in the blank 21 Property, plant, and equipment: $fill in the blank 23 $fill in the blank 25 fill in the blank 27 fill in the blank 29 $fill in the blank 31 fill in the blank 33 fill in the blank 35 $fill in the blank 37 fill in the blank 39 fill in the blank 41 $fill in the blank 43 fill in the blank 45 fill in the blank 47 Total property, plant, and equipment fill in the blank 48 Intangible assets: fill in the blank 50 Total assets $fill in the blank 51 Liabilities Current liabilities: $fill in the blank 53 fill in the blank 55 fill in the blank 57 fill in the blank 59 fill in the blank 61 fill in the blank 63 fill in the blank 65 fill in the blank 67 fill in the blank 69 fill in the blank 71 fill in the blank 73 Total current liabilities $fill in the blank 74 Long-term liabilities: $fill in the blank 76 fill in the blank 78 fill in the blank 80 Total long-term liabilities fill in the blank 81 Total liabilities $fill in the blank 82 Stockholders’ Equity $fill in the blank 84 fill in the blank 86 Total stockholders’ equity fill in the blank 87 Total liabilities and stockholders’ equity $fill in the blank 88

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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Comprehensive Problem 3
Part 5:

Note: You must complete parts 1, 2, 3, and 4 of this comprehensive problem before completing part 5.

Based on the following information and the post-closing trial balance that follows, 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		$7,140
Long-term liability		3,360
The unfunded pension liability is a long-term liability.
Notes payable:
Current liability		$ 70,000
Long-term liability		630,000

Kornett Company Post-Closing Trial Balance December 31, 20Y5
Account Title	Debit Balances	Credit Balances
Petty Cash	4,500
Cash	243,960
Notes Receivable	100,000
Accounts Receivable	470,000
Allowance for Doubtful Accounts		16,000
Inventory	320,000
Interest Receivable	1,875
Prepaid Insurance	45,640
Office Supplies	13,400
Land	654,925
Buildings	900,000
Accumulated Depreciation—Buildings		36,000
Office Equipment	246,000
Accumulated Depreciation—Office Equipment		44,000
Store Equipment	112,000
Accumulated Depreciation—Store Equipment		5,000
Mineral Rights	546,000
Accumulated Depletion		30,000
Patents	42,000
Social Security Tax Payable		25,470
Medicare Tax Payable		4,710
Employees Federal Income Tax Payable		40,000
State Unemployment Tax Payable		270
Federal Unemployment Tax Payable		40
Salaries Payable		157,000
Accounts Payable		131,600
Interest Payable		28,000
Product Warranty Payable		76,000
Vacation Pay Payable		10,500
Unfunded Pension Liability		50,700
Notes Payable		700,000
Common Stock		500,000
Retained Earnings		1,845,010
	3,700,300	3,700,300

Kornett Company Balance Sheet December 31, 20Y5
Assets
Current assets:
		$fill in the blank 2
		fill in the blank 4
		fill in the blank 6
	$fill in the blank 8
	fill in the blank 10
		fill in the blank 12
		fill in the blank 14
		fill in the blank 16
		fill in the blank 18
		fill in the blank 20
Total current assets			$fill in the blank 21
Property, plant, and equipment:
		$fill in the blank 23
	$fill in the blank 25
	fill in the blank 27
		fill in the blank 29
	$fill in the blank 31
	fill in the blank 33
		fill in the blank 35
	$fill in the blank 37
	fill in the blank 39
		fill in the blank 41
	$fill in the blank 43
	fill in the blank 45
		fill in the blank 47
Total property, plant, and equipment			fill in the blank 48
Intangible assets:
			fill in the blank 50
Total assets			$fill in the blank 51

Liabilities
Current liabilities:
		$fill in the blank 53
		fill in the blank 55
		fill in the blank 57
		fill in the blank 59
		fill in the blank 61
		fill in the blank 63
		fill in the blank 65
		fill in the blank 67
		fill in the blank 69
		fill in the blank 71
		fill in the blank 73
Total current liabilities			$fill in the blank 74
Long-term liabilities:
		$fill in the blank 76
		fill in the blank 78
		fill in the blank 80
Total long-term liabilities			fill in the blank 81
Total liabilities			$fill in the blank 82

Stockholders’ Equity
		$fill in the blank 84
		fill in the blank 86
Total stockholders’ equity			fill in the blank 87
Total liabilities and stockholders’ equity			$fill in the blank 88

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