Below are the transactions and adjustments that occurred during he rst year o operations at Kissick Co. a. Issued 198,000 shares of $4-par-value common stock for $792,000 in cash b. Borrowed $520,000 from Oglesby National Bank and signed a 11% note due in three years c. Incurred and paid $380,000 in salaries for the year d. Purchased $680,000 of merchandise inventory on account during the year e. Sold inventory costing $570,000 for a total of $920,000, all on credit. f. Paid rent of $110,000 on the sales facilities during the first 11 months of the year. g. Purchased $180,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days h. Paid the entire $127,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. i. Incurred and paid utilities expense of $36,000 during the year J. Collected $845,000 in cash from customers during the year for credit sales previously recorded k. At year-end, accrued $57 200 of interest on the note due to Oglesby National Bank l. At year-end, accrued $10,000 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 helpfui to prepare Taccounts for each account affected by the transactions.) KISSICK CO Income Statement

Question

Please help me prepare a income statement and balance sheet .. I'm currently working on it and I need to know that I'm doing it correctly.

Below are the transactions and adjustments that occurred during he
rst year o operations at Kissick Co.
a. Issued 198,000 shares of $4-par-value common stock for $792,000 in cash
b. Borrowed $520,000 from Oglesby National Bank and signed a 11% note due in three years
c. Incurred and paid $380,000 in salaries for the year
d. Purchased $680,000 of merchandise inventory on account during the year
e. Sold inventory costing $570,000 for a total of $920,000, all on credit.
f. Paid rent of $110,000 on the sales facilities during the first 11 months of the year.
g. Purchased $180,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days
h. Paid the entire $127,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases
previously recorded.
i. Incurred and paid utilities expense of $36,000 during the year
J. Collected $845,000 in cash from customers during the year for credit sales previously recorded
k. At year-end, accrued $57 200 of interest on the note due to Oglesby National Bank
l. At year-end, accrued $10,000 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 helpfui to prepare Taccounts for each account affected by the
transactions.)
KISSICK CO
Income Statement
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Transcribed Image Text

Below are the transactions and adjustments that occurred during he rst year o operations at Kissick Co. a. Issued 198,000 shares of $4-par-value common stock for $792,000 in cash b. Borrowed $520,000 from Oglesby National Bank and signed a 11% note due in three years c. Incurred and paid $380,000 in salaries for the year d. Purchased $680,000 of merchandise inventory on account during the year e. Sold inventory costing $570,000 for a total of $920,000, all on credit. f. Paid rent of $110,000 on the sales facilities during the first 11 months of the year. g. Purchased $180,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days h. Paid the entire $127,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. i. Incurred and paid utilities expense of $36,000 during the year J. Collected $845,000 in cash from customers during the year for credit sales previously recorded k. At year-end, accrued $57 200 of interest on the note due to Oglesby National Bank l. At year-end, accrued $10,000 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 helpfui to prepare Taccounts for each account affected by the transactions.) KISSICK CO Income Statement

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