ssued 196,000 shares of $5-par-value common stock for $980,000 in cash. Borrowed $530,000 from Oglesby National...

ssued 196,000 shares of $5-par-value common stock for $980,000 in cash. Borrowed $530,000 from Oglesby National Bank and signed a 10% note due in three years. Incurred and paid $390,000 in salaries for the year. Purchased $660,000 of merchandise inventory on account during the year. Sold inventory costing $590,000 for a total of $910,000, all on credit. Paid rent of $330,000 on the sales facilities during the first 11 months of the year. Purchased $160,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days. Paid the entire $107,000 owed for store equipment and $620,000 of the amount due to suppliers for credit purchases previously recorded. Incurred and paid utilities expense of $37,000 during the year. Collected $825,000 in cash from customers during the year for credit sales previously recorded. At year-end, accrued $53,000 of interest on the note due to Oglesby National Bank. At year-end, accrued $30,000 of past-due December rent on the sales facilities. Required: a. Prepare an income statement (ignoring income taxes) for Kissick Co.'s first year of operations and a balance sheet as of the end of the year. (Hint: You may find it helpful to prepare T-accounts for each account affected by the transactions.)

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ekkarill92 answered 2 years ago

Issued 195,000 shares of $5-par-value common stock for $975,000 in cash. Borrowed $520,000 from Oglesby National...

Issued 195,000 shares of $5-par-value common stock for $975,000 in cash. Borrowed $520,000 from Oglesby National Bank and signed a 10% note due in three years. Incurred and paid $390,000 in salaries for the year. Purchased $670,000 of merchandise inventory on account during the year. Sold inventory costing $570,000 for a total of $900,000, all on credit. Paid rent of $110,000 on the sales facilities during the first 11 months of the year. Purchased $170,000 of store equipment, paying $52,000...

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