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

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

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter1: Business Transactions (ptrans)

Section: Chapter Questions

Problem 7R

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