Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 260,000 shares of $5.par-value common stock for $1,300,000 in cash. b. Borrowed $500.000 from Oglesby National Bank and signed a 14% note due in two years. c. incurred and paid $380,000 n salaries for the year. d. Purchased $710,000 of merchandise inventory on account during the year e. Sold inventory costing $660,000 for a total of $950,000, all on credit f. Paid rent of $220,000 on the sales facilities during the first 11 months of the year. g. Purchased $160,000 of store equipment, paying $50,000 in cash and agreeing to pay the difference within 90 days h. Paid the entire $110,000 owed for store equipment and $610,000 of the amount due to suppliers for credit purchases previously recorded I Incurred and paid utilities expense of $44,000 during the year. J. Collected $855,000 in cash from customers during the year for credit sales previously recorded, k. At year-end, accrued $70,000 of interest on the note due to Oglesby National Bank. 1. At year-end, accrued $20,000 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. ASSETS menu HOT SURE TOSS WITH US Steevee Statement et LIABILITIES STOCKHOLDERS Net income Revenue EQUITY Expenses Merchandise Notes Accounts Common Inventory Equipment Payable Payable Stock Accounts + Receivable Cash 1 2 3 4 5 6 7 8 ..... 13 > Issued 260,000 shares of $5-par-value common stock for $1,300,000 in cash. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Currency Internationalization Global Experiences And Implications For The Renminbi

Authors: Wensheng Peng, Chang Shu

2nd Edition

0230580491, 9780230580497

More Books

Students also viewed these Accounting questions