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

1. Issued 192,000 shares of $4-par-value common stock for $768,000 in cash.
2. Borrowed $530,000 from Oglesby National Bank and signed a 11% note due in three years.
3. Incurred and paid $380,000 in salaries for the year.
4. Purchased $640,000 of merchandise inventory on account during the year.
5. Sold inventory costing $590,000 for a total of $920,000, all on credit.
6. Paid rent of $110,000 on the sales facilities during the first 11 months of the year.
7. Purchased $180,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days.
8. Paid the entire $129,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded.
9. Incurred and paid utilities expense of $34,000 during the year.
10. Collected $855,000 in cash from customers during the year for credit sales previously recorded.
11. At year-end, accrued $58,300 of interest on the note due to Oglesby National Bank.
12. At year-end, accrued $10,000 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 a T-account for the Cash account since it is affected by most of the transactions.)

KISSICK CO.
Income Statement
Sales
Cost of goods sold
Gross profit	$0
Salaries expense
Rent expense
Utilities expense
Loss from operations	$0
Interest expense
Net loss	$0

KISSICK CO.
Balance Sheet
Assets:
Cash
Accounts receivable
Merchandise inventory
Total current assets	0
Equipment
Total assets	$0
Liabilities:
Accounts payable
Rent payable
Interest payable
Total current liabilities	0
Total liabilities	$0
Stockholders' Equity:
Common stock
Total Stockholders' equity	0
Total liabilities and stockholders' equity	$0