Question
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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