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k Your Work- Google ChromeNot secure ezto.mheducation.com/hm.tpxQ C AssignGoogle | G Below.6LA 44 +C !(A Not secure ezto.mheducation.com/.OPausedKISSICK CO.Balance SheetBelow are the transactions and adjustments that occurred during the first year ofoperations at Kissick CoAssets:CashAccounts receivableMerchandise inventorys 739,00075,000110,000a. 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 threeyearsc. Incurred and paid $380,000 in salaries for the yeard. Purchased $680,000 of merchandise inventory on account during the yeare. Sold inventory costing $570,000 for a total of S920,000, all on credit.f. Paid rent of $110,000 on the sales facilities during the first 11 months of the yearg. Purchased $180,000 of store equipment, paying $53,000 in cash and agreeing to payTotal current assetsEquipmentTotal assets924,000180.000$ 1,104,000the difference within 90 daysh. Paid the entire $127,000 owed for store equipment and $600,000 of the amount dueto suppliers for credit purchases previously recordedi. Incurred and paid utilities expense of S36,000 during the yearj. Collected $845,000 in cash from customers during the year for credit sales previouslyLiabilities:Accounts payableRent payableInterest payablerecordedk. At year-end, accrued $57,200 of interest on the note due to Oglesby National Bank.I. At year-end, accrued $10,000 of past-due December rent on the sales facilities● 10,000057,200Total current liabilitiesNotes payableTotal liabilities67,200520,000S 587,200Required:a. Prepare an income statement (ignoring income taxes) for Kissick Co.'s first year ofoperations and a balance sheet as of the end of the year. (Hint: You may find it helpfulto prepare T-accounts for each account affected by the transactions.)Stockholders' Equity:KISSICK CO.792.000 o(896,800)Common stockIncome StatementDeficit/Net lossalesCost of goods soldGross profit$ 920,000570,000ApowerMirrorTotal Stockholders' equityTotal liabilities and stockholders(104,800)S 482,400alaries expenseKelley's iPhone connected5:05 PM1/17/2019

Question

Can you please check and correct what I may be doing wrong? I can't seem to find the correct answer for this. For Cash I did the common stock $792,000 -$53000 =
& for the deficit/loss I used the ending net loss of my income statement which was correct and was $896,800 however, when inserting in the balance sheet it says it's wrong. Can you teach me the balance sheet thoroughly?

k Your Work- Google Chrome
Not secure ezto.mheducation.com/hm.tpx
Q C Assign
Google | G Below.
6LA 44 +
C !(
A Not secure ezto.mheducation.com/.
O
Paused
KISSICK CO.
Balance Sheet
Below are the transactions and adjustments that occurred during the first year of
operations at Kissick Co
Assets:
Cash
Accounts receivable
Merchandise inventory
s 739,000
75,000
110,000
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 S920,000, 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
Total current assets
Equipment
Total assets
924,000
180.000
$ 1,104,000
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 S36,000 during the year
j. Collected $845,000 in cash from customers during the year for credit sales previously
Liabilities:
Accounts payable
Rent payable
Interest payable
recorded
k. At year-end, accrued $57,200 of interest on the note due to Oglesby National Bank.
I. At year-end, accrued $10,000 of past-due December rent on the sales facilities
● 10,0000
57,200
Total current liabilities
Notes payable
Total liabilities
67,200
520,000
S 587,200
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.)
Stockholders' Equity:
KISSICK CO.
792.000 o
(896,800)
Common stock
Income Statement
Deficit/Net loss
ales
Cost of goods sold
Gross profit
$ 920,000
570,000
ApowerMirror
Total Stockholders' equity
Total liabilities and stockholders
(104,800)
S 482,400
alaries expense
Kelley's iPhone connected
5:05 PM
1/17/2019
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k Your Work- Google Chrome Not secure ezto.mheducation.com/hm.tpx Q C Assign Google | G Below. 6LA 44 + C !( A Not secure ezto.mheducation.com/. O Paused KISSICK CO. Balance Sheet Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co Assets: Cash Accounts receivable Merchandise inventory s 739,000 75,000 110,000 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 S920,000, 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 Total current assets Equipment Total assets 924,000 180.000 $ 1,104,000 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 S36,000 during the year j. Collected $845,000 in cash from customers during the year for credit sales previously Liabilities: Accounts payable Rent payable Interest payable recorded k. At year-end, accrued $57,200 of interest on the note due to Oglesby National Bank. I. At year-end, accrued $10,000 of past-due December rent on the sales facilities ● 10,0000 57,200 Total current liabilities Notes payable Total liabilities 67,200 520,000 S 587,200 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.) Stockholders' Equity: KISSICK CO. 792.000 o (896,800) Common stock Income Statement Deficit/Net loss ales Cost of goods sold Gross profit $ 920,000 570,000 ApowerMirror Total Stockholders' equity Total liabilities and stockholders (104,800) S 482,400 alaries expense Kelley's iPhone connected 5:05 PM 1/17/2019

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check_circleAnswer
Step 1

As a first step, the income statement has to be prepared as net income/ (loss) is being showing as wrong information entered.

Hence the income statemenet has been prepared as above:

Net loss has been worked out as ($ 243200)

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Step 2

Now, the next step is to compute the cash balance by adding the receipts of the periods and payments of periods on the other end. The difference is ending balance as computed above.

Ending balance of cash is $ 851000

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Step 3

The balance of accounts Payable has to be computed as the inventory purchased on credit is more than the pay...

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