Record the following on journal page 22. Residual Acquisition Useful Life Asset
ID: 2499872 • Letter: R
Question
Record the following on journal page 22.
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
Question: What is the balance sheet in report form at December 31, 2016?
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 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. Jun. 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. Assume a 360-day year. 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.) Sep. 15 Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. (Record as two entries.)Explanation / Answer
Answer:1
Jan 3. Issued a check to establish a petty cash fund of 4500
Dr Petty Cash 4500
Cr Cash 4500
26 Feb. 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.
Dr Office Supplies Expense 1680
Dr Miscellaneous Expense 570
Dr Miscellaneous Administrative Expense 880
Cr Cash 3130
Apr 14 Purchased $31,300 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory.
Dr Merchandise Inventory 31300
Cr Accounts Payable 31300
May 13. Paid the invoice of April 5 after the discount period had passed
Dr Accounts Payable 31300
Cr Cash 31300
17. Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240.
Dr Cash 21200
Dr Over/Short 40
Cr Sales 21240
Jun 2.Received a 60-day, 8% note for $180,000 on the Ryanair account.
Dr Notes Receivable 180,000
Cr Accounts Receivable 180,000
Aug 1 Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year.
Dr Cash 182400
Cr Notes Receivable 180,000
Cr Interest Revenue 2400
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.)
Dr Cash 7600
Cr Accounts Receivable 7600
For the write-off, it would depend on which method you are supposed to use. For the direct method, it would be:
Dr Bad Debt Expense 1400
Cr Accounts Receivable 1400
Using the allowance method, it would be:
Dr Allowance for Doubtful Accounts 1400
Cr Accounts Receivable 1400
15. Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. (Record as two entries.)
Dr Cash 1400
Cr Accounts Receivable 1400
sept 15 Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Assume a 360-day year.
Dr Land 685075
Dr Discount on Notes Payable 15,075 (670,000 x 9% x 90/360)
Cr Notes Payable 670,000
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 accumulated depreciation of $64,000 as of October 17.
Dr Cash 135,000
Dr Notes Receivable 100,000
Dr Accumulated Depreciation 64,000
Dr Loss on Sale 21,000
Cr Office Equipment 32,0000
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