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Problem 4 - 2 4 ( Static ) Prepare an income statement and balance sheet from transaction data LO 4 - 1 Following are the
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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