Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co

Issued 196,000 shares of $4-par-value common stock for $784,000 in cash.

Borrowed $550,000 from Oglesby National Bank and signed a 11% note due in three years.

Incurred and paid $390,000 in salaries for the year.

Purchased $690,000 of merchandise inventory on account during the year.

Sold inventory costing $580,000 for a total of $920,000, 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 $53,000 in cash and agreeing to pay the difference within 90 days.

Paid the entire $127,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded.

Incurred and paid utilities expense of $37,000 during the year.

Collected $855,000 in cash from customers during the year for credit sales previously recorded.

At year-end, accrued $60,500 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.

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.)

(Amounts to be deducted and net loss should be indicated with minus sign.)

>>>>>> HOW DO I FIND DEFICIT/NET LOSS???????

Interest expense Net loss 60,500 S (386,500) (Amounts to be deducted and net loss shouid be indicated with minus sign.j KISSICK co Balance Sheet Assets: Cash Accounts receivable Merchandise inventory 652,000 65,000 110.000 Total current assets quipment Total assets 827 000 180,000 S 1,007.000 Liabilities: Accounts payable nterest payable ent payable 90,000 60.500 30.000 Total current liabilities Notes payable 180.500 550,000 S 730 500 Total liabilities Stockholders Equity Common stock $784,000 eficit/Net loss Total Stockholders equity Total liabilities and stockholders equity S 1,514.500 784 000