Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co.
Issued 199,000 shares of $6-par-value common stock for $1,194,000 in cash.
Borrowed $530,000 from Oglesby National Bank and signed a 11% note due in three years.
Incurred and paid $410,000 in salaries for the year.
Purchased $650,000 of merchandise inventory on account during the year.
Sold inventory costing $570,000 for a total of $920,000, all on credit.
Paid rent of $220,000 on the sales facilities during the first 11 months of the year.
Purchased $170,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days.
Paid the entire $117,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded.
Incurred and paid utilities expense of $37,000 during the year.
Collected $845,000 in cash from customers during the year for credit sales previously recorded.
At year-end, accrued $58,300 of interest on the note due to Oglesby National Bank.
At year-end, accrued $20,000 of past-due December rent on the sales facilities.
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a. Prepare an income statement (ignoring income taxes) for Kissick Co.'s first year of operations and a balance sheet as of the end of the year. (Hint: You may find it helpful to prepare a T-account for the Cash account since it is affected by most of the
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Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 199,000 shares of $6-par-value common stock for $1,194,000 in cash. b. Borrowed $520,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $390,000 in salaries for the year. d. Purchased $690,000 of merchandise inventory on account during the year. e. Sold inventory costing $580,000 for a total of $900,000, all on credit. f....
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. y car. a. Issued 198,000 shares of $4-par-value common stock for $792,000 in cash. b. Borrowed $530,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $400,000 in salaries for the year. d. Purchased $710,000 of merchandise inventory on account during the year. e. Sold inventory costing $590,000 for a total of $920,000, all on...
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Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 198,000 shares of $4-par-value common stock for $792,000 in cash. Borrowed $520,000 from Oglesby National Bank and signed a 10% note due in three years. Incurred and paid $410,000 in salaries for the year. Purchased $730,000 of merchandise inventory on account during the year. Sold inventory costing $570,000 for a total of $900,000, all on credit. Paid rent of $330,000 on the...
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Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 194,000 shares of $5-par-value common stock for $970,000 in cash. Borrowed $540,000 from Oglesby National Bank and signed a 11% note due in three years. Incurred and paid $390,000 in salaries for the year. Purchased $700,000 of merchandise inventory on account during the year. Sold inventory costing $590,000 for a total of $900,000, all on credit. Paid rent of $220,000 on the...
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