Selected transactions completed by Gampfer Company during its first fiscal year ending December 31 were as follows: Jan. 2. Issued a check to establish a petty cash fund of $3200 Mar. 14. Replenished the petty cash fund based on the following summary of petty cash receipts: office supplies, $1200; miscellaneous selling expense, $410; miscellaneous administrative expense, $620. Apr. 21. Purchased $22,400 of merchandise on account, term 1/10, n/30. The perpetual inventory system is used to account for inventory. May. 20. Paid the invoice of April 21 after the discount period has passed. 23. Received cash from daily cash sales for $15,120. The amount indicated by the cash register was $15,152. June 15. Received a 60-day, 10% note for $127,500 on the Cady account. Aug. 14. Received amount owed on June 15 note, plus interest at the maturity date. 18. Received $5,440 on the Yoder account and wrote off the remainder owed on a $6400 accounts receivable balance. (the allowance method is used in accounting for uncollectible receivables.) Sep. 9. Reinstated the Yoder account written off on August 18 and received $960 cash in full payment. 15. Purchased land by issuing a $480,000 90-day note to Ace Development Co., which discounted it at 8%. Oct. 17. Sold office equipment in exchange for $96000 cash plus receipt of a $64000, 90-day, 6% note. The equipment had a cost of $224,000 and accumulated depreciation of $44,800 as of October 17. Nov. 30. Journalized the monthly payroll for November, based on the following data: Salaries: Deductions: Sales salaries $96640 Income Tax withheld $28,090 Social security tax withheld $9,110 Medicare tax withheld $2,278 Office Salaries $55,200 Total $ 151,840 Unemployment tax rates: State unemployment 4.0% Federal unemployemnt0,8% Amount subject to unemployment taxes: state unemployment $5,000 Federal unemployment $5,000 30. Journalized the employer's payroll taxes on the payroll Dec. 14. Journalized the payment of the September 15 note at maturity 31. The pension cost for the year was $136,000 of which $99,840 was paid to the pension plan trustee. INSTRUCTIONS: 1. Journalize the selected transactions 2. Based on the following data, prepare a bank reconciliation for December of the current year: a. Balance according to the bank statement at Dec. 31. $202,240 b. Balance according to the ledger at Dec. 31. $175,440 c. Checks outstanding at Dec. 31. $48,960 d. Deposit in transit, not recorded by bank, $21,120. e. Bank debit memo for service charges, $540 f. A cechk for $11,520 in payment of an invoice was incorrectly recorded in the accounts as $11,020. 3. Based on the bank reconciliation prepare in(2), journalize the entry or entries to be made by Gampfer company. 4. based on the following selected data, journalize the adjusting entries as of Dec. 31 of the current year: a. estimated uncollectible accounts at Dec. 31, $11,520, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at Dec. 31 was $1,200 (debit). b. The physical inventory on Dec. 31. indicated an inventory shrinkage of $2,360. c. Prepaid insurance expired during the year, $16,300. d. Office supplies used during the year, $2,800 e. Depreciation is computed as follows: Asset Cost Residual value Acquisition date useful life in years Depreciation method used Buildings $650,000 0 Jan. 2 50 Double-declining balance Office Equip 176,000. 16000 Jan. 3. 5 Straight-line Store Equip. 80,000 8000 July 1 10 Straight-line f. A patent costing $36,000 when acquired on Jan. 2. has a remaining legal life of eight years and is expected to have value for six years. g. The cost of mineral rights was $390,000. Of the estimated deposit of 650,000 tons of ore, 38,400 tons were mined and sold during the year. h. Vacation pay expense for December, $7500. I. A product warranty was granted beginning Dec. 1 and covering a one-year period. The estimated cost is 3% of sales, which totaled $1,350,000 in Dec. j. Interest was accrued on the note receivable received on Oct. 17. 5. Based on the following information and the post-closing trial balance shown below, prepare a balance sheet in report form at Dec. 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 $5,100 Long-term liability $2,400 The unfunded pension liability is a long-term liability: Notes payable: Current liability: $50,000 Long-term liability $450,000 Gamfer company post-closing trial balance Dec. 31, 2012 Debit Credit Petty Cash 3200 Cash 174,400 Notes Receivable 64,000 Accounts receivable 336000 Allowance for Doubtful Accounts 11520 Merchandise inventory 230000 Interest receivable 800 prepaid insurance 32600 office supplies 9600 land 470400 buildings 650000 accumulated depreciation-buildings 26000 office equipment 176000 accumulated depreciation-office equipment 32000 store equipment 80000 accumulated depreciation-store equipment 3600 mineral rights 390000 accumulated depletion 23040 patents 30000 social security tax payable 13513 mdeicare tax payable 3378 employees federal income tax payable 28090 state unemployment tax payable 40 federal unemployment tax payable 200 salaries payable 112612 accounts payable 224000 interest payable 20207 product warranty payable 40500 vacation pay payable 7500 unfunded pension liability 36160 notes payable 500000 J. Gampfer, Capital 1564640 2647000 2647000