Journalize the selected transactions. 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. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Kornett Company. Use the Miscellaneous Administrative Expense account to record bank service charges.
The tables for Nov. 30 data, 4. e. data and 5. are attached as images. Need solutions to check for entire problem.
Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, 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; 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 |
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| Sept. | 15. | Reinstated the Finley account written off on August 24 and received $1,400 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 equipment had a cost of $320,000 and |
| Nov. | 30. |
Journalized the monthly payroll for November, based on the following data: |
| 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. |
Instructions
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Journalize the selected transactions.
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Based on the following data, prepare a bank reconciliation for December of the current year:
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Balance according to the bank statement at December 31, $283,000.
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Balance according to the ledger at December 31, $245,410.
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Checks outstanding at December 31, $68,540.
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Deposit in transit, not recorded by bank, $29,500.
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Bank debit memo for service charges, $750.
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A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.
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Based on the bank reconciliation prepared in (2),
journalize the entry or entries to be made by Kornett Company. Use the Miscellaneous Administrative Expense account to record bank service charges. -
Based on the following selected data, journalize the
adjusting entries as of December 31 of the current year:-
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).
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The physical inventory on December 31 indicated an inventory shrinkage of $3,300.
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Prepaid insurance expired during the year, $22,820.
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Office supplies used during the year, $3,920.
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Depreciation is computed as follows:
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A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years.
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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.
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Vacation pay expense for December, $10,500.
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A 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.
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Interest was accrued on the note receivable received on October 17.
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Based on the following information and the post-closing
trial balance that follows, prepare abalance sheet in report form at December 31 of the current year:-
The merchandise inventory is stated at cost by the LIFO method.
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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
AnswerCheck Figure: Total assets, $3,569,300
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