Problem $4\mathrm{.}23$

LO $4-2,4-6,4-7$

Record transactions and adjustments Use the horizontal model, or write the journal entry, for each of the following transactions and adjustments that occurred during the first year of operations at Kissick Co$.$

a$.$ Issued $800,000$ shares of $$5-$par$-$value common stock for $$400,000$ in cash.

b$.$ Borrowed $$200,000$ from Oglesby National Bank and signed a $8\%$ note due in three years.

c$.$ Incurred and paid $$160,000$ in salaries for the year.

d$.$ Purchased $$301,000$ of merchandise inventory on account during the year.

e$.$ Sold inventory costing $$250,000$ for a total of $$205,000,$ all on credit.

f$.$ Paid rent of $$44,000$ on the sales facilities during the first $11$ months of the year.

g$.$ Purchased $$60,000$ of store equipment, paying $$18,000$ in cash and agreeing to pay the difference within $90$ days.

h$.$ Paid the entire $$42,000$ owed for store equipment and $$227,000$ of the amount due to suppliers for credit purchases previously recorded.

i$.$ Incurred and paid utilities expense of $$15,000$ during the year.

j$.$ Collected $$221,000$ in cash from customers during the year for credit sales previously recorded.

k$.$ At year$-$end, accrued $$16,000$ of interest on the note due to Oglesby National Bank.

At year$-$end, accrued $$4,000$ of past$-$due December rent on the sales facilities.