Question 4.21 data General Journal Date Account Titles Debit Credit

A. Cash $1,000,0009 (debit) Common Stock $1,000,000 (credit)

B. Cash $500,000 (debit) Notes Payable $500,000 (credit)

C. Salaries Expense $380,000 (debit) Cash $380,000 (credit)

D. Merchandise Inventory $640,000 (debit) Accounts Payable $640,000 (credit)

E. Accounts Receivable $910,000 (debit) Sales $910,000 (credit) Cost of Goods Sold $580,000 (debit) Merchandise Inventory $580,000 (credit)

F. Rent Expense $110,000 (debit) Cash $110,000 (credit)

G. Equipment $150,000 (debit) Cash $50,000 (credit) Accounts Payable $100,000 (credit)

H. Accounts Payable $720,000 (debit) Cash $720,000 (credit)

I. Utilities Expense $36,000 (debit) Cash $36,000 (credit)

J. Cash $825,000 (debit) Account Receivable $825,000 (credit)

K. Interest Expense $60,000 (debit) Interest Payable $60,000 (credit)

L. Rent Expense $10,000 (debit) Rent Payable $10,000 Problem (credit)

4.22 - Prepare an income statement and balance sheet from 4.21 transaction data?

a. based on you answers to problem 4.21, prepare an imcome statment ingnoring income taxes for Kissick first year of operations and a balance sheet as of the end of the year.

b. Provide a brief written evaluatioin of kissick results form the opetations for the year and its financial position at the end of the year. In your opinion, what are the likely explanations for the company's net loss?