Problem 4 - 2 4 ( Static ) Prepare an income statement and balance sheet from transaction
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Problem Static Prepare an income statement and balance sheet from transaction data LO
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company.
a Issued shares of $parvalue common stock for $ in cash.
b Borrowed $ from Oglesby National Bank and signed a note due in three years.
c Incurred and paid $ in salaries for the year.
d Purchased $ of merchandise inventory on account during the year.
e Sold inventory costing $ for a total of $ all on credit.
f Paid rent of $ on the sales facilities during the first months of the year.
g Purchased $ of store equipment, paying $ in cash and agreeing to pay the difference within days.
h Paid the entire $ owed for store equipment and $ of the amount due to suppliers for credit purchases previously
recorded.
i Incurred and paid utilities expense of $ during the year.
j Collected $ in cash from customers during the year for credit sales previously recorded.
k At yearend, accrued $ of interest on the note due to Oglesby National Bank.
I. At yearend, accrued $ of pastdue December rent on the sales facilities.
Required:
a Prepare an income statement ignoring income taxes for Kissick Company's first year of operations and a balance sheet as of the
end of the year. Hint: You may find it helpful to prepare a Taccount for the Cash account since it is affected by most of the
transactions. Reminder: Increases to expenses should be entered as negative numbers to show the impact on net income. See Exhibi
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Required A
Prepare an income statement ignoring income taxes for Kissick Company's first year of operations as of the end of the year.
Hint: You may find it helpful to prepare a Taccount for the Cash account since it is affected by most of the transactions.
Reminder: Increases to expenses should be entered as negative numbers to show the impact on net income. See Exhibit
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