Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company.Issued 800,000 shares of $5-par-value common stock for $400,000 in cash.Borrowed $200,000 from Oglesby National Bank and signed a 8% note due in three years.Incurred and paid $160,000 in salaries for the year.Purchased $301,000 of merchandise inventory on account during the year.Sold inventory costing $205,000 for a total of $250,000, all on credit.Paid rent of $44,000 on the sales facilities during the first 11 months of the year.Purchased $60,000 of store equipment, paying $18,000 in cash and agreeing to pay the difference within 90 days.Paid the entire $42,000 owed for store equipment and $227,000 of the amount due to suppliers for credit purchases previously recorded.Incurred and paid utilities expense of $15,000 during the year.Collected $221,000 in cash from customers during the year for credit sales previously recorded.At year-end, accrued $16,000 of interest on the note due to Oglesby National Bank.At year-end, accrued $4,000 of past-due December rent on the sales facilities.Required:a. Prepare an income statement (ignoring income taxes) for Kissick Company'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.) Reminder: Increases to expenses should be entered as negative numbers to show the impact on net income. See Exhibit 4.3.