Problem $4-23($Static$)$ Record transactions and adjustments LO $4-2,4-6,4-7$ CH $04$ HW i

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Record each transaction in the appropriate columns. Indicate the financial statement effect.

Note: Enter decreases with a minus sign to indicate a negative financial statement effect.

$\backslash$table$[[$Transaction$,$ASSETS,$=,$LIABILITIES,$\backslash$table$[[\backslash$table$[[+],[+]]]],\backslash$table$[[$STOCKHOLDERS$\text{'}],[$EQUITY$],[$Common Stock$]],],[$Cash$,+,\backslash$table$[[$Accounts$],[$Receivable$]],+,\backslash$table$[[$Merchandise$],[$Inventory$]],+,$Equipment,$=,\backslash$table$[[$Notes$],[$Payable$]],+,\backslash$table$[[$Accounts$],[$Payable$]],],[$a$.,400,000,,,,,,,,,,,,400,000,$larr$],[$b$.,200,000,,,,,,,,200,000,,,,,$larr$],[$c$.,(160,000),,,,,,,,,,,,,$larr$],[$d$.,,,,,301,000,,,,,,301,000,,,$larr$],[$e$.,,,250,000,,,,,,,,,,,],[$e$.,,,,,(205,000),,,,,,,,,],[$f$.,(44,000),,,,,,,,,,,,,$larr$],[$g$.,(18,000),,,,,,60,000,,,,42,000,,,$larr$],[$h$.,(269,000),,,,,,,,,,(269,000),,,$larr$],[$i$.,(15,000),,,,,,,,,,,,,$larr$],[$j$.,221,000,,(221,000),,,,,,,,,,,$larr$],[$k$.,,,,,,,,,,,16,000,,,$larr$],[$I$.,,,,,,,,,,,4,000,,,$larr$],[,315,000,+,29,000,+,96,000,+,60,000,=,200,000,+,94,000,+,400,000,$larr$]]$

Required A $\backslash$end$\{$tabular$\}\}$ & $\backslash$multirow$[$t$]\{2\}\{*\}\{$ Expenses $\}\backslash$

$\backslash$hline & & & &

$\begin{array}{cc}\text{N}\text{o}\text{t}\text{e}\text{s}& \text{P}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}\end{array}$ & $+$ &

$\begin{array}{cc}\text{A}\text{c}\text{c}\text{o}\text{u}\text{n}\text{t}\text{s}& \text{P}\text{a}\text{y}\text{a}\text{b}\text{l}\text{e}\end{array}$ & & & & & & & & $\backslash$

$\backslash$hline & & & & & & & & $400,000$ & larr & & & & & $\backslash$

$\backslash$hline & & & & $200,000$ & & & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & & & & larr & & & & & $(160,000)\backslash$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{01,000\}$ & & & & & & $301,000$ & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & & & & & & & $250,000$ & & $\backslash$

$\backslash$hline $\backslash$multicolumn$\{15\}\{|$l$|\}\{(5,000)\}\backslash$

$\backslash$hline & & & & & & & & & larr & & & & & $\backslash$

$\backslash$hline & & $60,000$ & & & & $42,000$ & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & $(269,000)$ & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & $16,000$ & & & larr & & & & & $\backslash$

$\backslash$hline & & & & & & $4,000$ & & & larr & & & & & $\backslash$

$\backslash$hline $96,000$ & $+$ & $60,000$ & $=$ & $200,000$ & $+$ & $94,000$ & $+$ & $400,000$ & larr & $0$ & $=$ & $250,000$ & $-$ & $160,000\backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company.

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 $$205,000$ for a total of $$250,000,$ 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.

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

Required:

a$.$ Record each transaction in the appropriate columns. Indicate the financial statement effect.

b$.$ Prepare the journal entry for the above transactions.

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