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; miscellaneous administrative expense, $880. Apr. 14. Purchased $31,300 of merchandise on account, terms n/30. The perpetual inventory system is used to account for inventory. May 13. Paid the invoice of April 14. 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 accounting for uncollectible receivables.) Sept. 15. Reinstated the Finley account written off on August 24 and received S1,400 cash in full payment. 15. Purchased land by issuing a $670,000, 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 equip- ment 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: Salaries Deductions Sales salaries $39,266 12,735 $135,000 Income tax withheld Office salaries 250ךר7 $212,250 Social security tax withheld Medicare tax withheld 3,184 Unemployment tax rates: State unemployment Federal unemployment Amount subject to unemployment taxes: State unemployment Federal unemployment 5.4% 0.8% $5,000 5,000 30. Journalized the employer's payroll taxes on the payroll. Dec. 14. Journalized 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. Residual Value Acquisition Date Useful Life Depreciation Method Used Asset Cost in Years $900,000 Buildings Office Equip. January 2 January 3 July 1 Double-declining-balance Straight-line Straight-line 50 246,000 26,000 5 Store Equip. 12000ו 12,000 10 G. 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. H. Vacation pay expense for December, $10,500. LA product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900.000 in December. 1. Interest was accrued on the note receivable received on October 17. 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 Long-term lkability $7,140 3,360 The unfunded pension lability is a long-term liability. Notes payable Current liability Long-term liability $ 70,000 630,000 Kornett Company Post-Closing Trial Balance December 31, 20YS Debit Balances Credit Balances 4,500 Petty Cash Cash Notes Receivable. 243,960 100,000 Accounts Receivable.. Allowance for Doubtful Accounts. Inventory.... Interest Receivable Prepaid Insurance. Office Supplies.. Land .. Buildings Accumulated Depreciation-Buildings.. Office Equipment. Accumulated Depreciation-Office Equipment.. Store Equipment... Accumulated Depreciation-Store Equipment. Mineral Rights .. Akcumulated Depletion. 470,000 16,000 320,000 1,875 45,640 13.400 654,925 900,000 36,000 246,000 44,000 112.000 5,000 546,000 30,000 Patents.. 42,000 Social Security Tax Payable.. Medicare Tax Payable.. Employees Federal Income Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Salaries Payable.... Accounts Payable. Interest Payable... Product Warranty Payable... Vacation Pay Payable. Unfunded Pension Liability Notes Payable..... Common Stock. . Retained Earnings. 25,470 4,710 40,000 270 40 ............ ......... 157,000 131,600 28,000 76,000 10,500 50,700 700,000 500,000 1,845,010 3,700,300 ...... ......... 3,700,300