Make a balance sheet a. Salaries accrued: sales salaries, $4,275; officers salar

Question

Make a balance sheet a. Salaries accrued: sales salaries, $4,275; officers salaries, $2,175; office salaries, $825. The payroll taxes are immaterial and are not accrued b. Vacation pay, $13,350. nsive Problem 3 Selected transactions completed by Kornett Company during its first fiscal year ended De cember 31, 2016, 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; miscella- neous administrative expense, $880. Apr. 14. Purchased $31,300 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory May 13. Paid the invoice of April 14 after the discount period had passed. 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 ac- counting for uncollectible receivables.) in full payment. discounted it at 9%. 90-day, 9% note. The equipment had a cost of $320,000 and accumulated Sept.15. Reinstated the Finley account written off on August 24 and received $1,400 cash 15. Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which 35,000 cash plus receipt of a $100,000, Oct. 17. Sold office equipment in exchange for $1 depreciation of $64,000 as of October 17 (Continued)

Explanation / Answer

Balance sheet at December 31 capital 2345010 Petty Cash 4500 notes payable 700000 Cash 243960 unfunded pension liab 50700 Notes Receivable 100000 Vacation pay payable 10500 A/c receivable 470000 Allowances For Dbtful a/c 16000 Mercha inventory 320000 Social sec tax payable 25470 Intt Receivable 1875 medicare tax payable 4710 Prepaid Insurance 45640 Employee fed tax payable 40000 Office Supplies 13400 State unemp tax payable 270 Fixed Assets: Fed unemp tax payable 40 Land 654925 Acc depn on buildings 36000 Buildings 900000 Acc depn on offce eqtmt 44000 Office equipment 246000 Acc depn on store eqtmt 5000 Store equipment 112000 Deplation on min rights 30000 Mineral Rights 546000 Salary payable 157000 Patents 42000 Accounts payable 131600 intt payable 28000 product warranty payable 76000 Total Liabilities 3700300 Total Assets 3700300

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