I NEED HELP WITH PART 3 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500. Date Description Debit Credit Jan. 3 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. Date Description Debit Credit Feb. 26 Apr. 14: Purchased $31,300 of merchandise on account, terms n/30. The perpetual inventory system is used to account for inventory. Date Description Debit Credit Apr. 14 Inventory Accounts Payable May 13: Paid the invoice of April 14. Date Description Debit Credit May 13 Accounts Payable Cash May 17: Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Date Description Debit Credit May 17 Cash Cash Short and Over Sales June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account. Date Description Debit Credit June 2 Notes Receivable Accounts Receivable-Ryanair Aug. 1: Received amount owed on June 2 note, plus interest at the maturity date. Date Description Debit Credit Aug. 1 Cash Notes Receivable Interest Revenue Aug. 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.) Date Description Debit Credit Aug. 24 Cash Allowance for Doubtful Accounts Accounts Receivable-Finley Sept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. Date Description Debit Credit Sept. 15 Accounts Receivable-Finley Allowance for Doubtful Accounts Cash Accounts Receivable-Finley Sept. 15: Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Date Description Debit Credit Sept. 15 Land Interest Expense Notes Payable 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. Date Description Debit Credit Oct. 17 Cash Notes Receivable Accumulated Depreciation-Office Equip. Loss on Sale of Office Equipment Office Equipment Nov. 30: Journalized the monthly payroll for November, based on the following data: Salaries Deductions Sales salaries $135,000 Income tax withheld $39,266 Office salaries 77,250 Social security tax withheld 12,735 $212,250 Medicare tax withheld 3,184 Unemployment tax rates: State unemployment 5.4% Federal unemployment 0.8% Amount subject to unemployment taxes: State unemployment $5,000 Federal unemployment 5,000 Date Description Debit Credit Nov. 30 Sales Salaries Expense Office Salaries Expense Employees Income Tax Payable Social Security Tax Payable Medicare Tax Payable Salaries Payable Nov. 30: Journalized the employer's payroll taxes on the payroll. Date Description Debit Credit Nov. 30 Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Dec. 14: Journalized the payment of the September 15 note at maturity. Date Description Debit Credit Dec. 14 Notes Payable Cash Dec. 31: The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee. Date Description Debit Credit Dec. 31 Pension Expense Cash Unfunded Pension Liability You must complete part 1 before completing part 2. Based on the following data, prepare a bank reconciliation for December of the current year: a. Balance according to the bank statement at December 31, $283,000.b. Balance according to the ledger at December 31, $245,410.c. Checks outstanding at December 31, $68,540.d. Deposit in transit, not recorded by bank, $29,500.e. Bank debit memo for service charges, $750.f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. Kornett CompanyBank ReconciliationDecember 31, 20Y5 Balance according to bank statement $ Add: Deposit in transit on December 31 Deduct: Outstanding checks Adjusted balance $ Balance according to company's records $ Deduct: Bank service charges $ Deduct: Error in recording check Total deductions Adjusted balance $ Part 3: Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem. 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. If an amount box does not require an entry, leave it blank. Date Description Debit Credit Dec. 31 Miscellaneous Administrative Expense Accounts Payable Cash

I NEED HELP WITH PART 3 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500. Date Description Debit Credit Jan. 3 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. Date Description Debit Credit Feb. 26 Apr. 14: Purchased $31,300 of merchandise on account, terms n/30. The perpetual inventory system is used to account for inventory. Date Description Debit Credit Apr. 14 Inventory Accounts Payable May 13: Paid the invoice of April 14. Date Description Debit Credit May 13 Accounts Payable Cash May 17: Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Date Description Debit Credit May 17 Cash Cash Short and Over Sales June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account. Date Description Debit Credit June 2 Notes Receivable Accounts Receivable-Ryanair Aug. 1: Received amount owed on June 2 note, plus interest at the maturity date. Date Description Debit Credit Aug. 1 Cash Notes Receivable Interest Revenue Aug. 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.) Date Description Debit Credit Aug. 24 Cash Allowance for Doubtful Accounts Accounts Receivable-Finley Sept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. Date Description Debit Credit Sept. 15 Accounts Receivable-Finley Allowance for Doubtful Accounts Cash Accounts Receivable-Finley Sept. 15: Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Date Description Debit Credit Sept. 15 Land Interest Expense Notes Payable 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. Date Description Debit Credit Oct. 17 Cash Notes Receivable Accumulated Depreciation-Office Equip. Loss on Sale of Office Equipment Office Equipment Nov. 30: Journalized the monthly payroll for November, based on the following data: Salaries Deductions Sales salaries $135,000 Income tax withheld $39,266 Office salaries 77,250 Social security tax withheld 12,735 $212,250 Medicare tax withheld 3,184 Unemployment tax rates: State unemployment 5.4% Federal unemployment 0.8% Amount subject to unemployment taxes: State unemployment $5,000 Federal unemployment 5,000 Date Description Debit Credit Nov. 30 Sales Salaries Expense Office Salaries Expense Employees Income Tax Payable Social Security Tax Payable Medicare Tax Payable Salaries Payable Nov. 30: Journalized the employer's payroll taxes on the payroll. Date Description Debit Credit Nov. 30 Payroll Taxes Expense Social Security Tax Payable Medicare Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Dec. 14: Journalized the payment of the September 15 note at maturity. Date Description Debit Credit Dec. 14 Notes Payable Cash Dec. 31: The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee. Date Description Debit Credit Dec. 31 Pension Expense Cash Unfunded Pension Liability You must complete part 1 before completing part 2. Based on the following data, prepare a bank reconciliation for December of the current year: a. Balance according to the bank statement at December 31, $283,000.b. Balance according to the ledger at December 31, $245,410.c. Checks outstanding at December 31, $68,540.d. Deposit in transit, not recorded by bank, $29,500.e. Bank debit memo for service charges, $750.f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. Kornett CompanyBank ReconciliationDecember 31, 20Y5 Balance according to bank statement $ Add: Deposit in transit on December 31 Deduct: Outstanding checks Adjusted balance $ Balance according to company's records $ Deduct: Bank service charges $ Deduct: Error in recording check Total deductions Adjusted balance $ Part 3: Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem. 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. If an amount box does not require an entry, leave it blank. Date Description Debit Credit Dec. 31 Miscellaneous Administrative Expense Accounts Payable Cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 1PA: On September 1, French company has decided to initiate a petty cash fund in the amount of $800....

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I NEED HELP WITH PART 3

1. Journalize the selected transactions. Assume 360 days per year.

If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Jan. 3: Issued a check to establish a petty cash fund of $4,500.

Date	Description	Debit	Credit
Jan. 3

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.

Date	Description	Debit	Credit
Feb. 26

Apr. 14: Purchased $31,300 of merchandise on account, terms n/30. The perpetual inventory system is used to account for inventory.

Date	Description	Debit	Credit
Apr. 14	Inventory
	Accounts Payable

May 13: Paid the invoice of April 14.

Date	Description	Debit	Credit
May 13	Accounts Payable
	Cash

May 17: Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240.

Date	Description	Debit	Credit
May 17	Cash
	Cash Short and Over
	Sales

June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account.

Date	Description	Debit	Credit
June 2	Notes Receivable
	Accounts Receivable-Ryanair

Aug. 1: Received amount owed on June 2 note, plus interest at the maturity date.

Date	Description	Debit	Credit
Aug. 1	Cash
	Notes Receivable
	Interest Revenue

Aug. 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.)

Date	Description	Debit	Credit
Aug. 24	Cash
	Allowance for Doubtful Accounts
	Accounts Receivable-Finley

Sept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment.

Date	Description	Debit	Credit
Sept. 15	Accounts Receivable-Finley
	Allowance for Doubtful Accounts
	Cash
	Accounts Receivable-Finley

Sept. 15: Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%.

Date	Description	Debit	Credit
Sept. 15	Land
	Interest Expense
	Notes Payable

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.

Date	Description	Debit	Credit
Oct. 17	Cash
	Notes Receivable
	Accumulated Depreciation-Office Equip.
	Loss on Sale of Office Equipment
	Office Equipment

Nov. 30: Journalized the monthly payroll for November, based on the following data:

Salaries	Deductions
Sales salaries	$135,000	Income tax withheld	$39,266
Office salaries	77,250	Social security tax withheld	12,735
	$212,250	Medicare tax withheld	3,184

Unemployment tax rates:
State unemployment		5.4%
Federal unemployment		0.8%
Amount subject to unemployment taxes:
State unemployment		$5,000
Federal unemployment		5,000

Date	Description	Debit	Credit
Nov. 30	Sales Salaries Expense
	Office Salaries Expense
	Employees Income Tax Payable
	Social Security Tax Payable
	Medicare Tax Payable
	Salaries Payable

Nov. 30: Journalized the employer's payroll taxes on the payroll.

Date	Description	Debit	Credit
Nov. 30	Payroll Taxes Expense
	Social Security Tax Payable
	Medicare Tax Payable
	State Unemployment Tax Payable
	Federal Unemployment Tax Payable

Dec. 14: Journalized the payment of the September 15 note at maturity.

Date	Description	Debit	Credit
Dec. 14	Notes Payable
	Cash

Dec. 31: The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee.

Date	Description	Debit	Credit
Dec. 31	Pension Expense
	Cash
	Unfunded Pension Liability

You must complete part 1 before completing part 2.

Based on the following data, prepare a bank reconciliation for December of the current year:

a. Balance according to the bank statement at December 31, $283,000.
b. Balance according to the ledger at December 31, $245,410.
c. Checks outstanding at December 31, $68,540.
d. Deposit in transit, not recorded by bank, $29,500.
e. Bank debit memo for service charges, $750.
f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.

Kornett Company Bank Reconciliation December 31, 20Y5
Balance according to bank statement		$
Add: Deposit in transit on December 31
Deduct: Outstanding checks
Adjusted balance		$

Balance according to company's records		$
Deduct: Bank service charges	$
Deduct: Error in recording check
Total deductions
Adjusted balance		$

Part 3:

Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem.

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. If an amount box does not require an entry, leave it blank.

Date	Description	Debit	Credit
Dec. 31	Miscellaneous Administrative Expense
	Accounts Payable
	Cash

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