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 Co. a. Issued 190,000 shares of $5-par-value common

image text in transcribedimage text in transcribedimage text in transcribed

Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 190,000 shares of $5-par-value common stock for $950,000 in cash. b. Borrowed $510,000 from Oglesby National Bank and signed a 10% note due in three years. c. Incurred and paid $420,000 in salaries for the year. d. Purchased $720,000 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 $330,000 on the sales facilities during the first 11 months of the year. g. Purchased $170,000 of store equipment, paying $55,000 in cash and agreeing to pay the difference within 90 days. h. Paid the entire $115,000 owed for store equipment and $620,000 of the amount due to suppliers for credit purchases previously recorded. i. Incurred and paid utilities expense of $35,000 during the year. j. Collected $835,000 in cash from customers during the year for credit sales previously recorded. k. At year-end, accrued $51,000 of interest on the note due to Oglesby National Bank. I. At year-end, accrued $30,000 of past-due December rent on the sales facilities.

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

Step: 3

blur-text-image

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

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

10th edition

133117413, 978-0133129519, 133129519, 978-0133129557, 133129551, 978-0133117561, 133117561, 978-0133117417

More Books

Students also viewed these Accounting questions

Question

'Show that A0 Y minimizes the sum of squares SA0 Xn i1 Yi & A0 2

Answered: 1 week ago