Use the horizontal model, or write the journal entry, for each of the following transactions and adjustments
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Question:
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.
- Issued 250,000 shares of $6-par-value common stock for $1,500,000 in cash.
- Borrowed $510,000 from Oglesby National Bank and signed a 12% note due in two years.
- Incurred and paid $400,000 in salaries for the year.
- Purchased $650,000 of merchandise inventory on account during the year.
- Sold inventory costing $610,000 for a total of $940,000, all on credit.
- Paid rent of $110,000 on the sales facilities during the first 11 months of the year.
- Purchased $150,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days.
- Paid the entire $99,000 owed for store equipment and $620,000 of the amount due to suppliers for credit purchases previously recorded.
- Incurred and paid utilities expense of $36,000 during the year.
- Collected $855,000 in cash from customers during the year for credit sales previously recorded.
- At year-end, accrued $61,200 of interest on the note due to Oglesby National Bank.
- At year-end, accrued $10,000 of past-due December rent on the sales facilities.
Required:Record each transaction in the appropriate columns. Indicate the financial statement effect.
Posted Date: