4. Based ou the following selected data, journalize the adjusting entries as of of the current year: a. Estimated uncollectible accounts at December 31, $16,000, based accounts receivable. The balance of Allowance for Doubtful Accounts a n was $2,000 (debit). shrinkage of $33 b. The physical inventory on December 31 indicated an inventorys c. Prepaid insurance expired during the year, $22,820. ice supplies used during the year, $3,920. e. Depreciation is computed as follows AcquisitionUseful Life Residual Value in Years 50 Cost0 Date Asset Buildings Office Equip. 246,000 26,000 January 3 Store Equip. 112,000 12,000 July 1 $900,000 $0 January 2 Straight-line Straight-line 10 f. A patent costing $48,000 when acquired on January 2 has a remaining legal . 10 years and is expected to have value for eight years. g. Th e cost of mineral rights was $546,000. Of the estimated deposit of 91 ore, 50,000 tons were mined and sold during the year 0,000 acation pay expense for December, $10,500. i. A product warranty was granted beginning December 1 and covering a one-we h. V period. The estimated cost is 4% of sales, which totaled $1,900,000 in December i. Interest was accrued on the note receivable received on October 17 5. Based on the following information and the post-closing trial balance that folla prepare a balance sheet in report form at December 31 of the current year. The merchandise inventory is stated at cost by the LIFO method The product warranty payable is a current liability Vacation pay payable: Current liability Long-term liability $7,140 3,360 The unfunded pension liability is a long-term liability Notes payable: Current liability Long-term liability $ 70,000 630,000 Chapter 10 Current Liabilities and Payroll 497 Kornett Company Post-Closing Trial Balance December 31, 2016 Debit Balances Credit Balances Cash Notes Receivable Accounts Receivable.... Allowance for Doubtful Accounts. Merchandise Inventory Interest Receivable 4,500 243,960 100,000 470,000 16,000 Prepaid Insurance Land Buildings 320,000 1,875 45,640 13,400 654,925 900,000 36,000 44,000 5,000 30,000 Office Equipment Accumulated Depreciation-Office Equipment... 246,000 112,000 546,000 42,000 Accumulated Depreciation-Store Equipment.. Mineral Rights Patents 25,470 4,710 40,000 270 40 157,000 131,600 28,000 76,000 10,500 50,700 700,000 500,000 Social Security Tax Payable. Employees Federal Income Tax Payable State Unemployment Tax Payable Federal Unemployment Tax Payable Salaries Payable . .. Vacation Pay Payable Unfunded Pension Liability 3,700,300 3,700,300 erts