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ngageNOWv2] Online > signment/takeAssignmentMain.do?inprogress true ONYX 2012: The STARS MGT.pdf Area V Require Book Comprehensive Problem 3 Chart of Accounts Labels and Amount Descriptions Journal Bank Reconciliation Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Ys e as follows: Jan. Issued a check to establish a petty cash fund of S4 500 Feb. 26 Replenished the petty cash fund, based on the followving summary of petty cash receipts office supplies, $1,680 miscellaneous selling expense, S570; miscell Apr 14 Purchased $31.300 of merchandise on account, terms 1/10, n/30. The perpetual inventory system is used to account for inventory Paid the invoice of April 14 after the discount period had passed 13 17 Received cash from daity cash sales for $21,200. The amount indicated by the cash register was 521,240 Jun 2 Received a 60-day, 8% note for S180 000 on the Ryanair account Aug 1 Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year Racphred sT 600 on the Einley arcount and wrate off the remainder owadon a s9 000 k My Work 8 more Check My Work uses remaining Emai

Solution

Solution:

Journal Entries - Komett Company
Date	Particulars	Debit	Credit
1-Jan	Petty Cash Fund A/c Dr	$4,500.00
	To Bank		$4,500.00
	(Being Petty cash fund created)
26-Feb	Office supplies Dr	$1,680.00
	Miscellenous Selling Expenses Dr	$570.00
	Miscellenous Administrative Expenses Dr	$880.00
	To Petty Cash Fund		$3,130.00
	(Being petty expenses incurred)
14-Apr	Inventories Dr	$31,300.00
	To Accounts payable		$31,300.00
	(Being goods purchased on credit)
13-May	Accounts Payable Dr	$31,300.00
	To Bank		$31,300.00
	(Being payment made to vendor)
17-May	Cash A/c Dr	$21,200.00
	To Sales		$21,200.00
	(Being sales recorded)
2-Jun	Notes receivable A/c Dr	$180,000.00
	To Accounts Receivable		$180,000.00
	(Being note received from debtor for 60 days @ 8%)
1-Aug	Bank A/c Dr	$182,400.00
	To Notes receivables		$180,000.00
	To Interest Income (180000*8%*60/360)		$2,400.00
	(Being amount received with interest against notes)
24-Aug	Bank A/c Dr	$7,600.00
	Bad debts A/c Dr	$51,400.00
	To Accounts receivable		$59,000.00
	(Being amount received from debtor against full & final settlement)