Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co Issued 197,000 shares of $5 par value common stock for $985,000 in cash Borrowed $520,000 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 $590,000 for a total of $920,000, all on credit Paid rent of $220,000 on the sales facilities during the first 11 months of the year Purchased $180,000 of store equipment, paying $54,000 in cash and agreeing to pay the difference within 90 days Paid the entire $126,000 owed for store equipment and $630,000 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 $57,200 of interest on the note due to Oglesby National Bank At year end, accrued $20,000 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 )

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Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co Issued 197,000 shares of $5-par-value common stock for

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

Issued 197,000 shares of $5-par-value common stock for $985,000 in cash.
Borrowed $520,000 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 $590,000 for a total of $920,000, all on credit.
Paid rent of $220,000 on the sales facilities during the first 11 months of the year.
Purchased $180,000 of store equipment, paying $54,000 in cash and agreeing to pay the difference within 90 days.
Paid the entire $126,000 owed for store equipment and $630,000 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 $57,200 of interest on the note due to Oglesby National Bank.
At year-end, accrued $20,000 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.)