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a. Issued 220,000 shares of $8-par-value common stock for $1,760,000 in cash. b. Borrowed $560,000 from Oglesby National Bank and signed a 14% note due

a.

Issued 220,000 shares of $8-par-value common stock for $1,760,000 in cash.

b.

Borrowed $560,000 from Oglesby National Bank and signed a 14% note due in two years.

c. Incurred and paid $380,000 in salaries for the year.
d.

Purchased $640,000 of merchandise inventory on account during the year.

e.

Sold inventory costing $590,000 for a total of $910,000, all on credit.

f.

Paid rent of $110,000 on the sales facilities during the first 11 months of the year.

g.

Purchased $140,000 of store equipment, paying $50,000 in cash and agreeing to pay the difference within 90 days.

h.

Paid the entire $90,000 owed for store equipment, and $610,000 of the amount due to suppliers for credit purchases previously recorded.

i.

Incurred and paid utilities expense of $44,000 during the year.

j.

Collected $875,000 in cash from customers during the year for credit sales previously recorded.

k.

At year-end, accrued $78,400 of interest on the note due to Oglesby National Bank.

I. At year-end, accrued $10,000 of past-due December rent on the sales facilities.

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