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Use the horizontal model, or write the journal entry, for each of

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Record transactions.;Use the horizontal model, or write the journal entry, for each of;the following transactions that occurred during the first year of operations at Kissick Co.;a. Issued 200,000 shares of $5-par-value common stock for $1,000,000 in cash.;b. Borrowed $500,000 from the Oglesby National Bank and signed a 12% note;due in two years.;c. Incurred and paid $380,000 in salaries for the year.;d. Purchased $640,000 of merchandise inventory on account during the year.;e. Sold inventory costing $580,000 for a total of $910,000, all on credit.;f. Paid rent of $110,000 on the sales facilities during the first 11 months of the;year.;g. Purchased $150,000 of store equipment, paying $50,000 in cash and;agreeing to pay the difference within 90 days.;h. Paid the entire $100,000 owed for store equipment, and $620,000 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 $825,000 in cash from customers during the year for credit sales;previously recorded.;k. At year-end, accrued $60,000 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.;Prepare an income statement and balance sheet from transaction data.;a. Based on your answers to Problem 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.);b. Provide a brief written evaluation of Kissick Co.'s results from operations;for the year and its financial position at the end of the year. In your opinion;what are the likely explanations for the company's net loss?

 

Paper#27245 | Written in 18-Jul-2015

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