Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company. a. Issued 230,000 shares of $7-par-value common stock

image text in transcribed
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company. a. Issued 230,000 shares of \$7-par-value common stock for $1,610,000 in cash. b. Borrowed $560,000 from Oglesby National Bank and signed a 12% note due in three years. c. Incurred and paid $410,000 in salaries for the year. d. Purchased $700,000 of merchandise inventory on account during the year. e. Sold inventory costing $660,000 for a total of $990,000, all on credit. f. Paid rent of $220,000 on the sales facilities during the first 11 months of the year. 9. Purchased $160,000 of store equipment. paying $53,000 in cash and agreeing to pay the difference within 90 days. h. Paid the entire $107.000 owed for store equipment and $610.000 of the amount due to suppliers for credit purchases previously recorded. 1. Incurred and paid utilities expense of $45.000 during the year. j. Collected $845,000 in cash from customers during the year for credit sales previously recorded. k. At year-end, accrued $67,200 of interest on the note due to Oglesby National Bank. I. At year-end, accrued $20,000 of past-due December rent on the sales facilities. Required: a. Record each transaction in the appropriate columns. Indicate the financial statement effect. b. Prepare the journal entry for the above transactions. Complete this question by entering your answers in the tabs below. Record each transaction in the appropriate columns. Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tax Audit Approach And Due Diligence Related To Tax Credits

Authors: Mohamed Ben Sassi

1st Edition

6204246941, 978-6204246949

More Books

Students also viewed these Accounting questions

Question

What is the valence shell in Mg, Ge, W, Cl, Cs?

Answered: 1 week ago