Part 1:

Part 2:

Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, were as follows: 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500. Feb. 26: Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680; miscellaneous selling expense, $570; misce Apr. 14: Purchased $31,300 of merchandise on account, terms n/30. The perpetual inventory system is used to account for inventory. May 13: Paid the invoice of April 14. June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account. Aug. 1: Received amount owed on June 2 note, plus interest at the maturity date. Aug. 24: Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts Sept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment Sept. 15: Purchased land by issuing a $670,000,90-day note to Zahorik Co., which discounted it at 9%. Nov. 30: Journalize the monthly payroll for November, based on the following data: Nov. 30: Journalize the employer's payroll taxes on the payroll. Dec. 14: Journalize the payment of the September 15 note at maturity. comprehensive Problem 4 Part 2: Note: You must complete part 1 before part 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below were iken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: \begin{tabular}{ll} \hline Accounts payable & $194,300 \end{tabular} Accounts receivable 545,000 Accumulated depreciation-office buildings and equipment 1,580,000 Accumulated depreciation-store buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 1,700,000 Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill Income tax payable Interest receivable 155,120 100,000 700,000 44,000 1,200 Inventory (December 31,20Y8 ), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock, January 1,20Y8 0 Paid-in capital in excess of par-common stock, January 1, 20Y8736,800 Paid-in capital in excess of par-preferred stock, January 1, 20Y870,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1,20Y8 1,280,000 Premium on bonds payable Prepaid expenses Retained earnings, January 1,20Y 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, January 1,20 Y8 0 Equinox Products Inc. Income Statement For the Year Ended December 31, 20Y8 Sales Cost of goods sold Gross profit $5,313,0003,700,000$1,613,000 Operating expenses: Selling expenses: Sales salaries expense $385,000 Sales commissions Advertising expense Administrative expenses: Office salaries expense Office rent expense Office supplies expense Miscellaneous administrative expense Total operating expenses Operating income Other revenue and expense: b. Prepare a statement of stockholders' equity for the year ended December 31,20Y8. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter " 0 ". Total paid-in capital $ Total stockholders' equity Total liabilities and Stockholders' Equity Total property, plant, and equipment Intangible assets: Total assets Liabilities Current liabilities: Total current liabilities $ Long-term liabilities: Total liabilities $ Stockholders' Equity Paid-in capital: $ c. Prenare a balance sheet in reoort form as of December 31. 20 Y8. Total property, plant, and equipment Intangible assets: Total assets Liabilities Current liabilities: Total current liabilities $ Long-term liabilities: Total liabilities $ Stockholders' Equity Paid-in capital: $ Stockholders' Equity aid-in capital: Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, were as follows: 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500. Feb. 26: Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680; miscellaneous selling expense, $570; misce Apr. 14: Purchased $31,300 of merchandise on account, terms n/30. The perpetual inventory system is used to account for inventory. May 13: Paid the invoice of April 14. June 2: Received a 60-day, 8% note for $180,000 on the Ryanair account. Aug. 1: Received amount owed on June 2 note, plus interest at the maturity date. Aug. 24: Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts Sept. 15: Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment Sept. 15: Purchased land by issuing a $670,000,90-day note to Zahorik Co., which discounted it at 9%. Nov. 30: Journalize the monthly payroll for November, based on the following data: Nov. 30: Journalize the employer's payroll taxes on the payroll. Dec. 14: Journalize the payment of the September 15 note at maturity. comprehensive Problem 4 Part 2: Note: You must complete part 1 before part 2. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below were iken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: \begin{tabular}{ll} \hline Accounts payable & $194,300 \end{tabular} Accounts receivable 545,000 Accumulated depreciation-office buildings and equipment 1,580,000 Accumulated depreciation-store buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 1,700,000 Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill Income tax payable Interest receivable 155,120 100,000 700,000 44,000 1,200 Inventory (December 31,20Y8 ), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock, January 1,20Y8 0 Paid-in capital in excess of par-common stock, January 1, 20Y8736,800 Paid-in capital in excess of par-preferred stock, January 1, 20Y870,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1,20Y8 1,280,000 Premium on bonds payable Prepaid expenses Retained earnings, January 1,20Y 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, January 1,20 Y8 0 Equinox Products Inc. Income Statement For the Year Ended December 31, 20Y8 Sales Cost of goods sold Gross profit $5,313,0003,700,000$1,613,000 Operating expenses: Selling expenses: Sales salaries expense $385,000 Sales commissions Advertising expense Administrative expenses: Office salaries expense Office rent expense Office supplies expense Miscellaneous administrative expense Total operating expenses Operating income Other revenue and expense: b. Prepare a statement of stockholders' equity for the year ended December 31,20Y8. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter " 0 ". Total paid-in capital $ Total stockholders' equity Total liabilities and Stockholders' Equity Total property, plant, and equipment Intangible assets: Total assets Liabilities Current liabilities: Total current liabilities $ Long-term liabilities: Total liabilities $ Stockholders' Equity Paid-in capital: $ c. Prenare a balance sheet in reoort form as of December 31. 20 Y8. Total property, plant, and equipment Intangible assets: Total assets Liabilities Current liabilities: Total current liabilities $ Long-term liabilities: Total liabilities $ Stockholders' Equity Paid-in capital: $ Stockholders' Equity aid-in capital