Problem 4-21 (Static) Record transactions and adjustments LO 2, 6, 7 Use the horizontal model, or write the journal entry, for each of the following transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 100,000 shares of $5-par-value common stock for $500,000 in cash. b. Borrowed $250,000 from Oglesby National Bank and signed a 12% note due in three years. C. Incurred and paid $190,000 in salaries for the year. d. Purchased $320,000 of merchandise inventory on account during the year. e. Sold inventory costing $290,000 for a total of $455,000, all on credit. 4. Paid rent of $55,000 on the sales facilities during the first 11 months of the year. Q. Purchased $75,000 of store equipment , paying $25.000 in cash and agreeing to pay the difference within 90 days. h. Paid the entire $50,000 owed for store equipment and $310,000 of the amount due to suppliers for credit purchases previously recorded. 1. Incurred and paid utilities expense of $18,000 during the year. J. Collected $412,000 in cash from customers during the year for credit sales previously recorded. k. At year-end, accrued $30,000 of interest on the note due to Oglesby National Bank 1. At year-end, accrued $5,000 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. Required A Required B Record each transaction in the appropriate columns. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statem ASSETS LIABILITIES STOCKHOLDERS Net income - Revenue EQUITY Expens Transaction Accounts Merchandise Notes Accounts Common b. Prepare the journal entry for the above transactions Complete this question by entering your answers in the tabs below. Required A Required B Record each transaction in the appropriate columns. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) ASSETS STOCKHOLDERS LIABILITIES EQUITY Net income Revenue Expenses Transaction Accounts Merchandise Notes Abcounts Common Cash + Receivable Inventory Equipment Payable Payable Stock d O Required> J. Collected $412,000 in cash from customers during the year for credit sales previously k. At year-end, accrued $30,000 of interest on the note due to Oglesby National Bank 1. At year-end, accrued $5,000 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the journal entry for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 500.000 500,000 2 b 250.000 250.000 3 190.000 190.000 d 320,000 RRA 500.000 2 b. 250,000 250,000 3 190.000 190,000 4 d. 320,000 320,000 5 e-1 455.000 455.000 6 e-2 200.000 290,000 7 f. 55,000 55.000 8 75.000 25,000 h 200.000 X 260,000 290,000 7 55,000 55,000 8 9 75,000 25.000 h 260.000 260.000 10 18,000 18.000 11 412.000 412,000 12 k. 30.000 30,000 13 5.000 5.000
