Question: Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co
Issued 199,000 shares of $4-par-value common stock for $796,000 in cash.
Borrowed $540,000 from Oglesby National Bank and signed a 10% note due in three years.
Incurred and paid $420,000 in salaries for the year.
Purchased $740,000 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 $180,000 of store equipment, paying $55,000 in cash and agreeing to pay the difference within 90 days.
Paid the entire $125,000 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 $54,000 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.
Please assist in developing an Income Statement: and a
Balance Sheet :
Assets
Liabilities
Stockholders Equity