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CHART OF ACCOUNTS
Kornett Company
General Ledger
ASSETS 110 Petty Cash 111 Cash 112 Notes Receivable 113 Accounts Receivable 114 Allowance for Doubtful Accounts 115 Inventory 121 Interest Receivable 122 Prepaid Insurance 123 Office Supplies 130 Land 131 Buildings 132 Accumulated Depreciation-Buildings 133 Office Equipment 134 Accumulated Depreciation-Office Equipment 135 Store Equipment 136 Accumulated Depreciation-Store Equipment 137 Mineral Rights 138 Accumulated Depletion 141 Patents LIABILITIES 211 Social Security Tax Payable 212 Medicare Tax Payable 213 Employees Income Tax Payable 214 State Unemployment Tax Payable 215 Federal Unemployment Tax Payable 216 Salaries Payable 221 Accounts Payable 222 Interest Payable 223 Product Warranty Payable 231 Vacation Pay Payable 232 Unfunded Pension Liability 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary	REVENUE 410 Sales 610 Interest Revenue 611 Gain on Sale of Office Equipment EXPENSES 510 Cost of Goods Sold 521 Repairs Expense 522 Rent Expense 523 Insurance Expense 524 Bad Debt Expense 525 Office Supplies Expense 529 Cash Short and Over 551 Sales Salaries Expense 552 Office Salaries Expense 553 Payroll Tax Expense 554 Vacation Pay Expense 555 Pension Expense 561 Product Warranty Expense 571 Depreciation Expense-Buildings 572 Depreciation Expense-Office Equipment 573 Depreciation Expense-Store Equipment 574 Depletion Expense 575 Amortization Expense-Patents 581 Miscellaneous Selling Expense 582 Miscellaneous Administrative Expense 710 Interest Expense 711 Loss on Sale of Office Equipment

Labels and Amount Descriptions

Amount Descriptions (Bank Reconciliation)
Adjusted balance
Bank service charges
Deposit in transit
Error in recording check
NSF check
Outstanding checks
Labels (Balance Sheet)
Common stock
Current assets
Current liabilities
December 31, 20Y5
For the Year Ended December 31, 20Y5
Intangible assets
Long-term liabilities
Property, plant, and equipment
Retained earnings
Amount Descriptions (Balance Sheet)
Net cash flows from financing activities
Net cash flows from investing activities
Net cash flows from operating activities
Net increase (decrease) in cash
Total assets
Total current assets
Total current liabilities
Total liabilities
Total long-term liabilities
Total liabilities and stockholders equity
Total property, plant, and equipment
Total stockholders' equity

4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year 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: Useful Life in Years Asset Cost Buildings Office Equip Store Equip. $900,000 246,000 112,000 Residual Value $0 26,000 12,000 Acquisition Date January 2 January 3 July 1 Depreciation Method Used Double-declining-balance Straight-line 10 Straight-line A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Vacation pay expense for December, $10,500. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December. Interest was accrued on the note receivable received on October 17. Assume a 360-day year. *Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar 5. Based on the following information and the post-closing trial balance that follows, prepare a balance sheet in report form at December 31 of the current year. Be sure to complete the heading of the balance sheet. Enter assets in the order in which they appear in the post-closing trial balance. Refer to information given in the problem and the Labels and Amount Descriptions list for exact wording of text entries. There is no need to include "(current portion)" or a due date with any account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to the nearest dollar The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability Vacation pay payable: Current liability: $7,140 Long-term liability: 3,360 The unfunded pension liability is a long-term liability Notes payable: Current liability: $70,000 4. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year 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: Useful Life in Years Asset Cost Buildings Office Equip Store Equip. $900,000 246,000 112,000 Residual Value $0 26,000 12,000 Acquisition Date January 2 January 3 July 1 Depreciation Method Used Double-declining-balance Straight-line 10 Straight-line A patent costing $48,000 when acquired on January 2 has a remaining legal life of 10 years and is expected to have value for 8 years. The cost of mineral rights was $546,000. Of the estimated deposit of 910,000 tons of ore, 50,000 tons were mined and sold during the year. Vacation pay expense for December, $10,500. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 4% of sales, which totaled $1,900,000 in December. Interest was accrued on the note receivable received on October 17. Assume a 360-day year. *Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar 5. Based on the following information and the post-closing trial balance that follows, prepare a balance sheet in report form at December 31 of the current year. Be sure to complete the heading of the balance sheet. Enter assets in the order in which they appear in the post-closing trial balance. Refer to information given in the problem and the Labels and Amount Descriptions list for exact wording of text entries. There is no need to include "(current portion)" or a due date with any account titles. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your answers to the nearest dollar The merchandise inventory is stated at cost by the LIFO method. The product warranty payable is a current liability Vacation pay payable: Current liability: $7,140 Long-term liability: 3,360 The unfunded pension liability is a long-term liability Notes payable: Current liability: $70,000

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