PLEASE JOURNALIZED THE TRASACTIONS BELOW. Selected transactions completed by Kor

Question

PLEASE JOURNALIZED THE TRASACTIONS BELOW.

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. Purchased $31,300 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory. Paid the invoice of April 14 after the discount period had passed. Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Received a 60-day, 8% note for $180,000 on the Ryanair account. Received amount owed on June 2 note, plus interest at the maturity date. Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts receiv- able balance. (Theallowance method is used in accounting for uncollectible receivables) Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. Purchased land by issuing a $670,000, %-day note to Zahorik Co, which discounted it at 9%. 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 accumulated depredation of $64,000 as of October 17 Journalized the monthly payroll for November, based on the following data: Apr. 14. 13. 17. 2, 1. 24. May June Aug. Sept. 15. 15. 17. Oct. Nov. 30. Deductions Sales salaries Office salaries 7250 Social security tax withheld $212,250 Medicare tax withheld 39,266 12,735 3,184 Unemployment tax rates: State unemployment 5.4% 0.8% Amount subject to unemployment taxes: $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

Explanation / Answer

DATE

DETAILS

$

DEBIT A/C

CREDIT A/C

JAN 3

PETTY CASH REFUND

4500

PETTY CASH

CASH

FEB 26

REPLENISHED PETTY CASH FOR FOLLOWING EXPENSES:

1680

OFFICE SUPPLIES

570

MISC SELLING EXPENSES

880

MISC ADMIN EXPENSES

3130

PETTY CASH

FEB 26

REIMBURSED PETTY CASH

3130

PETTY CASH

3130

CASH

APR 14

PURCHASED MERCHANDISE

31300

PURCHASES

ACCOUNTS PAYABLE

MAY 13

PAID BILL OF APR 14

31300

ACCOUNTS PAYABLE

CASH

MAY 17

CASH SALES

21200

CASH

SALES

JUN 2

RYANAIR NOTE RECEIVED

180000

NOTES RECEIVABLE

ACCOUNTS RECEIVABLE

AUG 1

RECEIVED RYANAIR NOTE

180000

CASH

NOTES RECEIVABLE

14400

CASH

INTEREST INCOME

AUG 24

FINLEY CASH RECEIVED AND BALANCE WRITE OFF

7600

CASH

ACCOUNT RECEIVABLE

1400

BAD DEBTS

ACCOUNT RECEIVABLE

SEP 15

REINSTATED FINLEY

1400

ACCOUNT RECEIVABLE

BAD DEBTS

1400

CASH

ACCOUNT

RECEIVABLE

SEP 15

PURCHASED LAND BY ISSUING NOTE TO ZAHORIK CO ON 90 DAY NOTE

670000

LAND

ACCOUNTS PAYABLE - ZAHORIL

OCT 17

SALE OF OFFICE EQUIPMENT IN EXCHANGE FOR CASH AND NOTE

135000

CASH

EQUIPMENT DISPOSAL

100000

NOTES RECEIVABLE

EQUIPMENT DISPOSAL

OCT 17

TRANSFER OF COST AND DEP OF EQUIPMENT SOLD

320000

DISPOSAL OF EQUIPMENT

EQUIPMENT

64000

ACCUMULATED DEPRECIATION

EQUIPMENT

DISPOSAL OF EQUIPMENT

NOV 30

SALARY FOR NOV

135000

SALES SALARIES

77250

ADMIN SALARIES

157065

SALARIES PAYABLE

39266

INCOME TAX PAYABLE

12735

SOCIAL SECURITY TAX PAYABLE

3184

MEDICARE TAX

PAYABLE

NOV 30

ACCRUAL OF TAXES

5000

STATE UNEMPLOYMENT

TAX

STATE UNEMPLOYMENT

PAYABLE

5000

FEDERAL UNEMPLOYMENT

TAX

FEDERAL UNEMPLOYMENT

PAYABLE

DEC 14

PAID ZAHORIK FOR NOTE OF SEP 15 WITH DISC RECEIVED 9%

609700

NOTE PAYABLE

CASH

60300

NOTE PAYABLE

DISCOUNT RECEIVED

DEC 31

PAYMENT OF PENSION COST

139700

PENSION EXPENSE

CASH

ACCRUAL OF UNPAID PENSION

50700

PENSION EXPENSE

PENSION PAYABLE

DATE

DETAILS

$

DEBIT A/C

CREDIT A/C

JAN 3

PETTY CASH REFUND

4500

PETTY CASH

CASH

FEB 26

REPLENISHED PETTY CASH FOR FOLLOWING EXPENSES:

1680

OFFICE SUPPLIES

570

MISC SELLING EXPENSES

880

MISC ADMIN EXPENSES

3130

PETTY CASH

FEB 26

REIMBURSED PETTY CASH

3130

PETTY CASH

3130

CASH

APR 14

PURCHASED MERCHANDISE

31300

PURCHASES

ACCOUNTS PAYABLE

MAY 13

PAID BILL OF APR 14

31300

ACCOUNTS PAYABLE

CASH

MAY 17

CASH SALES

21200

CASH

SALES

JUN 2

RYANAIR NOTE RECEIVED

180000

NOTES RECEIVABLE

ACCOUNTS RECEIVABLE

AUG 1

RECEIVED RYANAIR NOTE

180000

CASH

NOTES RECEIVABLE

14400

CASH

INTEREST INCOME

AUG 24

FINLEY CASH RECEIVED AND BALANCE WRITE OFF

7600

CASH

ACCOUNT RECEIVABLE

1400

BAD DEBTS

ACCOUNT RECEIVABLE

SEP 15

REINSTATED FINLEY

1400

ACCOUNT RECEIVABLE

BAD DEBTS

1400

CASH

ACCOUNT

RECEIVABLE

SEP 15

PURCHASED LAND BY ISSUING NOTE TO ZAHORIK CO ON 90 DAY NOTE

670000

LAND

ACCOUNTS PAYABLE - ZAHORIL

OCT 17

SALE OF OFFICE EQUIPMENT IN EXCHANGE FOR CASH AND NOTE

135000

CASH

EQUIPMENT DISPOSAL

100000

NOTES RECEIVABLE

EQUIPMENT DISPOSAL

OCT 17

TRANSFER OF COST AND DEP OF EQUIPMENT SOLD

320000

DISPOSAL OF EQUIPMENT

EQUIPMENT

64000

ACCUMULATED DEPRECIATION

EQUIPMENT

DISPOSAL OF EQUIPMENT

NOV 30

SALARY FOR NOV

135000

SALES SALARIES

77250

ADMIN SALARIES

157065

SALARIES PAYABLE

39266

INCOME TAX PAYABLE

12735

SOCIAL SECURITY TAX PAYABLE

3184

MEDICARE TAX

PAYABLE

NOV 30

ACCRUAL OF TAXES

5000

STATE UNEMPLOYMENT

TAX

STATE UNEMPLOYMENT

PAYABLE

5000

FEDERAL UNEMPLOYMENT

TAX

FEDERAL UNEMPLOYMENT

PAYABLE

DEC 14

PAID ZAHORIK FOR NOTE OF SEP 15 WITH DISC RECEIVED 9%

609700

NOTE PAYABLE

CASH

60300

NOTE PAYABLE

DISCOUNT RECEIVED

DEC 31

PAYMENT OF PENSION COST

139700

PENSION EXPENSE

CASH

ACCRUAL OF UNPAID PENSION

50700

PENSION EXPENSE

PENSION PAYABLE

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.