Comprehensive Problem 3 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

Accounts ReceivableCashMiscellaneous Administrative ExpenseNotes PayablePetty Cash

fill in the blank 2

fill in the blank 3

Accounts PayableAccounts ReceivableCash Short and OverNotes PayableSales

fill in the blank 5

fill in the blank 6

Accounts PayableBad Debt ExpenseCashNotes PayablePetty Cash

Comprehensive Problem 3 Part 2:

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

Note: You must complete part 1 before completing part 2.

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

Balance according to the bank statement at December 31, $283,000. Balance according to the ledger at December 31, $245,410. Checks outstanding at December 31, $68,540. Deposit in transit, not recorded by bank, $29,500. Bank debit memo for service charges, $750. 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

Line Item Description	Amount	Amount
Accounts PayableBalance according to bank statementBalance according to company's recordsCashPetty cashBalance according to bank statement		$fill in the blank 2
Add: Accounts PayableAdd: Bank service chargesAdd: CashAdd: Deposit in transit on December 31Add: Service chargesAdd: Deposit in transit on December 31		fill in the blank 4
Add: Accounts PayableAdd: Error in recording checkAdd: Outstanding checksDeduct: Outstanding checksDeduct: Service chargesDeduct: Outstanding checks		fill in the blank 6
Adjusted balance		$fill in the blank 7
Accounts PayableBalance according to company's recordsBalance according to bank statementDeposits in transitPetty cashBalance according to company's records		$fill in the blank 9
Deduct: Accounts PayableDeduct: Bank service chargesDeduct: CashDeduct: Deposit in transit, not recorded by bankDeduct: Outstanding checksDeduct: Bank service charges	$fill in the blank 11
Deduct: Accounts PayableDeduct: Accounts receivableDeduct: Error in recording checkDeduct: Outstanding checksDeduct: Petty cashDeduct: Error in recording check	fill in the blank 13
Total deductions		fill in the blank 14
Adjusted balance		$fill in the blank 15

fill in the blank 8

fill in the blank 9