2024 – jan 2 issued a check to establish a petty cash of 3200 mar 14 replenished the petty cash fund

jan 2. issued a check to establish a petty cash of 3200

mar 14. replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, 1200; misc selling expense, 410; misc admin expense, 620

apr 21. purchases 22400 of merch on acct, terms 1/10, n/30. the perpetual inventory system is used to acct for inventory

may 20. paid the invoice of april 21 after the discount period has passed

may 23. received cash from daily cash sales for 15120. the amount indicaede by the cash register was 15152

june 15. received a 60 day, 10% note for 127500 on the cady account

aug 14. received amount owed on june 15 note, plus interest at the maturity date

aug 18. received 5440 on the yoder acct and wrote off the remainder owed on a 6400 accts receivable balance. (the allowance method is used in accting for uncollectible receivables.)

sept 9. reinstated the yoder acct written off on aug 18 and received 960 cash in full payment

sept 15. purchased land by issuing a 480000, 90-day note to ace development co., which discounted it at 8%

oct 17. sold office equipment in exchange for 96000 cash plus receipts of a 64000. 90-day, 6% note. the equipment had a cost of 224000 and accumulated depreciation of 44800 as of october 17.

nov 30. journalized the monthly payroll for november, based on the following data:

Salaries deductions

sales salaries 96640 income tax withheld 28090

office salaries 55200 social security tax withheld 9110

151840 medicare tax withheld 2278

unemployment tax rates:

state unemployment 4.0%

federal unemployment 0.8%

amount subject to unemployment taxes

state unemployment 5000

federal unemployment 5000

nov 30. journalized the employer’s payroll taxes on the payroll

dec 14. journalized the payment of the september 15 note at maturity

dec 31. the pension cost for the year was 136000, of which 99840 was paid to the pension plan trustee

instructions:

1. journalize the selected transactions

2. based on the following data, prepare a bank reconciliation for december of the current year:

a. balance according to the bank statement at dec 31, 202240

b. balance according to the ledger at dec 31, 175440

c. checks outstanding at dec 31, 48960

d. deposit in transit, not recorded by bank, 21120

e. bank debit memo for service charges, 540

f. a check for 11520 in payment of an invoice was incorrectly recorded in the accounts as 11020

3. based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by gampfer company.

4. based on the following selected data, journalize the adjusting entries as of dec 31 of the current year:

a. estimated uncollectible accounts at dec 31, 11520, based on an aging of accounts receivable. the balance of allowance for doubtful accounts at december 31 was 1200 (debit).

b. the physical inventory on december 31 indicated an inventory shrinkage of 2360

c. prepaid insurance expired during the year, 16300

d. office supplies used during the year, 2800

e. depreciation is computed as follows:

asset cost residual value acq. date useful life (yrs) deprec. method

buildings 650000 0 jan 2 50 dble-decl-balan

office equip 176000 16000 jan 3 5 straight line

store equip 80000 8000 jul 1 10 straight line

f. a patent costing 36000 when acquired on jan 2 has a remaining legal life of eight years and is expected to have value for six years

g. the cost of mineral rights was 390000. of the estimated deposit of 650000 tons of ore, 38400 tons were mined and sold during the year.

h. vacation pay expense for dec, 7500

i. a product warranty was granted beginning dec 1, and covering a one-year period. the estimated cost is 3% of sales, which totaled(NNN) NNN-NNNNin dec.

j. interest was accrued on the note receivable received on oct 17