Residual Acquisition Useful Life Asset Cost Value Date in Years Depreciation Met
ID: 2455001 • Letter: R
Question
Residual
Acquisition
Useful Life
Asset
Cost
Value
Date
in Years
Depreciation Method Used
Kornett Company
POST-CLOSING TRIAL BALANCE
December 31, 2016
1
Petty Cash
4,500.00
2
Cash
243,960.00
3
Notes Receivable
100,000.00
4
Accounts Receivable
470,000.00
5
Allowance for Doubtful Accounts
16,000.00
6
Merchandise Inventory
320,000.00
7
Interest Receivable
1,875.00
8
Prepaid Insurance
45,640.00
9
Office Supplies
13,400.00
10
Land
654,925.00
11
Buildings
900,000.00
12
Accumulated Depreciation-Buildings
36,000.00
13
Office Equipment
246,000.00
14
Accumulated Depreciation-Office Equipment
44,000.00
15
Store Equipment
112,000.00
16
Accumulated Depreciation-Store Equipment
5,000.00
17
Mineral Rights
546,000.00
18
Accumulated Depletion
30,000.00
19
Patents
42,000.00
20
Social Security Tax Payable
25,470.00
21
Medicare Tax Payable
4,710.00
22
Employees Federal Income Tax Payable
40,000.00
23
State Unemployment Tax Payable
270.00
24
Federal Unemployment Tax Payable
40.00
25
Salaries Payable
157,000.00
26
Accounts Payable
131,600.00
27
Interest Payable
28,000.00
28
Product Warranty Payable
76,000.00
29
Vacation Pay Payable
10,500.00
30
Unfunded Pension Liability
50,700.00
31
Notes Payable
700,000.00
32
J. Kornett, Capital
2,345,010.00
33
Totals
3,700,300.00
3,700,300.00
Based on the following data, prepare a bank reconciliation for December 2016. Refer to the Labels and Amount Descriptions list for exact wording of text entries. Enter all amounts as positive numbers. • 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. 3. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Kornett Company on page 23 of the journal. Kornett Company uses the Miscellaneous Administrative Expense account for bank service charges. 4. Based on the following selected data, journalize the adjusting entries as of December 31, 2016 on page 23 of the journal: • 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). • The physical inventory on December 31 indicated an inventory shrinkage of $3,300. • Prepaid insurance expired during the year, $22,820. • Office supplies used during the year, $3,920. • Depreciation is computed as follows:Explanation / Answer
Residual Acquisition Useful Life Asset Cost Value Date in Years Depreciation Met
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