Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company.

1. Issued 220,000 shares of $6-par-value common stock for $1,320,000 in cash.
2. Borrowed $570,000 from Oglesby National Bank and signed a 14% note due in three years.
3. Incurred and paid $430,000 in salaries for the year.
4. Purchased $680,000 of merchandise inventory on account during the year.
5. Sold inventory costing $630,000 for a total of $950,000, all on credit.
6. Paid rent of $110,000 on the sales facilities during the first 11 months of the year.
7. Purchased $170,000 of store equipment, paying $52,000 in cash and agreeing to pay the difference within 90 days.
8. Paid the entire $118,000 owed for store equipment and $610,000 of the amount due to suppliers for credit purchases previously recorded.
9. Incurred and paid utilities expense of $38,000 during the year.
10. Collected $865,000 in cash from customers during the year for credit sales previously recorded.
11. At year-end, accrued $79,800 of interest on the note due to Oglesby National Bank.
12. At year-end, accrued $10,000 of past-due December rent on the sales facilities.

Required:

1. Record each transaction in the appropriate columns. Indicate the financial statement effect.
2. Prepare the journal entry for the above transactions.