Comprehensive Problem 3 Part 5:

Note: You must complete parts 1, 2, 3, and 4 of this comprehensive problem before completing part 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:

The merchandise inventory is stated at cost by the LIFO method.

The product warranty payable is a current liability.

Line Item Description	Amount
Vacation pay payable:
Current liability	$7,140
Long-term liability	3,360

The unfunded pension liability is a long-term liability.

Line Item Description	Amount
Notes payable:
Current liability	$ 70,000
Long-term liability	630,000

Kornett Company Post-Closing Trial Balance December 31, 20Y5

Account Title	Debit Balances	Credit Balances
Petty Cash	4,500
Cash	243,960
Notes Receivable	100,000
Accounts Receivable	470,000
Allowance for Doubtful Accounts		16,000
Inventory	320,000
Interest Receivable	1,875
Prepaid Insurance	45,640
Office Supplies	13,400
Land	654,925
Buildings	900,000
Accumulated DepreciationBuildings		36,000
Office Equipment	246,000
Accumulated DepreciationOffice Equipment		44,000
Store Equipment	112,000
Accumulated DepreciationStore Equipment		5,000
Mineral Rights	546,000
Accumulated Depletion		30,000
Patents	42,000
Social Security Tax Payable		25,470
Medicare Tax Payable		4,710
Employees Federal Income Tax Payable		40,000
State Unemployment Tax Payable		270
Federal Unemployment Tax Payable		40
Salaries Payable		157,000
Accounts Payable		131,600
Interest Payable		28,000
Product Warranty Payable		76,000
Vacation Pay Payable		10,500
Unfunded Pension Liability		50,700
Notes Payable		700,000
Common Stock		500,000
Retained Earnings		1,845,010
Total	3,700,300	3,700,300

Kornett Company Balance Sheet December 31, 20Y5

Assets
Current assets:
Accounts payableBuildingsMineral rightsOffice equipmentPetty cash		$fill in the blank 2
Accounts payableCashCommon stockSalaries payableStore equipment		fill in the blank 4
Accumulated depreciationInterest payableNotes payableNotes receivableVacation pay payable		fill in the blank 6
Accounts payableAccounts receivableMineral rightsOffice equipmentUnfunded pension liability	$fill in the blank 8
Accounts payableAllowance for doubtful accountsCashLandProduct warranty payable	fill in the blank 10
Accounts payableAccounts receivable, netCashLandProduct warranty payable		fill in the blank 12
InventoryLandMedicare tax payableOffice equipmentState unemployment tax payable		fill in the blank 14
BuildingInterest payableInterest receivableStore equipmentVacation pay payable		fill in the blank 16
Accounts payableCommon stockPrepaid insuranceSalaries payableStore equipment		fill in the blank 18
Accounts payableCashCommon stockOffice equipmentOffice supplies		fill in the blank 20
Total current assets			$fill in the blank 21
Property, plant, and equipment:
Accounts receivableCashInventoryLandOffice supplies		$fill in the blank 23
BuildingsCashNotes receivablePetty cashPrepaid insurance	$fill in the blank 25
Accounts payableAccumulated depreciationbuildingsAllowance for doubtful accountsCashDepreciation expense	fill in the blank 27
Accounts payableAllowance for doubtful accountsBook valuebuildingsCashDepreciation expense		fill in the blank 29
CashInterest receivableOffice equipmentOffice suppliesSocial security tax payable	$fill in the blank 31
Accounts payableAccumulated depreciationoffice equipmentCommon stockDepreciation expenseInventory	fill in the blank 33
Accounts payableBook valueoffice equipmentCommon stockDepreciation expenseInventory		fill in the blank 35
Interest payableNotes payableNotes receivableStore equipmentVacation pay payable	$fill in the blank 37
Accumulated depreciationstore equipmentDepreciation expenseInventoryPetty cashProduct warranty payable	fill in the blank 39
Book valuestore equipmentDepreciation expenseInventoryPetty cashProduct warranty payable		fill in the blank 41
Accounts payableCashCommon stockMineral rightsSalaries payable	$fill in the blank 43
Accumulated depletionmineral rightsAllowance for doubtful accountsBuildingsPrepaid insuranceStore equipment	fill in the blank 45
Allowance for doubtful accountsBook valuemineral rightsBuildingsPrepaid insuranceStore equipment		fill in the blank 47
Total property, plant, and equipment			fill in the blank 48
Intangible assets:
CashCommon stockInventoryLandPatents			fill in the blank 50
Total assets			$fill in the blank 51
Liabilities
Current liabilities:
Accounts receivableCashCommon stockPetty cashSocial security tax payable		$fill in the blank 53
BuildingsInterest receivableInventoryMedicare tax payableOffice equipment		fill in the blank 55
Accounts receivableCashEmployees federal income tax payableMineral rightsOffice equipment		fill in the blank 57
Merchandise inventoryOffice equipmentOffice suppliesState unemployment tax payableUnfunded pension liability		fill in the blank 59
Federal unemployment tax payableInterest receivableLandOffice equipmentPetty cash		fill in the blank 61
BuildingsCommon stockPrepaid insuranceSalaries payableStore equipment		fill in the blank 63
Accounts payableAccounts receivableInterest receivableLandPetty cash		fill in the blank 65
Interest payableInterest receivableMerchandise inventoryMineral rightsOffice equipment		fill in the blank 67
Allowance for doubtful accountsBuildingsCashNotes receivableProduct warranty payable		fill in the blank 69
LandMerchandise inventoryOffice equipmentPrepaid insuranceVacation pay payable (current portion)		fill in the blank 71
Interest receivableMineral rightsNotes payable (current portion)Notes receivableOffice supplies		fill in the blank 73
Total current liabilities			$fill in the blank 74
Long-term liabilities:
CashInterest payableOffice equipmentPrepaid insuranceVacation pay payable		$fill in the blank 76
Accounts payableBuildingsLandSalaries payableUnfunded pension liability		fill in the blank 78
Accounts receivableNotes payableOffice suppliesSalesStore equipment		fill in the blank 80
Total long-term liabilities			fill in the blank 81
Total liabilities			$fill in the blank 82
Stockholders Equity
Accounts receivableCashCommon stockInterest payablePetty cash		$fill in the blank 84
Accounts receivableCashInterest payablePetty cashRetained earnings		fill in the blank 86
Total stockholders equity			fill in the blank 87
Total liabilities and stockholders equity			$fill in the blank 88