Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 195,000 shares of $5-par-value common stock for $975,000 in cash. b. Borrowed $520,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $410,000 in salaries for the year d. Purchased $680,000 of merchandise inventory on account during the year e. Sold inventory costing $580,000 for a total of $910,000, all on credit f. Paid rent of $110,000 on the sales facilities during the first 11 months of the year. 9. Purchased $180,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days h. Paid the entire $129,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded I. Incurred and paid utilities expense of $36,000 during the year. J. Collected $855,000 in cash from customers during the year for credit sales previously recorded. k. At year-end, accrued $57,200 of interest on the note due to Oglesby National Bank 1. At year-end, accrued $10,000 of past-clue 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.) Balance Sheet Assets: $ 975,000 Cash Accounts receivable Merchandise inventory Total current assets 975,000 $ 975,000 Total assets Liabilities: Rent payable Interest payable Total current liabilities 0 $ 0 Total liabilities Stockholders' Equity: Common stock $ 975,000 Total Stockholders' equity Total liabilities and stockholders' equity 975,000 975,000 IS KISSICK CO. Income Statement $ 0 Sales Cost of goods sold Gross profit Rent expense Utilities expense Salaries expense 0 Loss from operations Interest expense Net loss $ 0