Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 196,000 shares of $4-par-value common stock for $784,000 in cash b. Borrowed $540,000 from Oglesby National Bank and signed a 10% note due in three years. c. Incurred and paid $400,000 in salaries for the year. d. Purchased $640,000 of merchandise inventory on account during the year. e. Sold inventory costing $580,000 for a total of $900,000, all on credit f. Paid rent of $110,000 on the sales facilities during the first 11 months of the year g. Purchased $190,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days. h. Paid the entire $139,000 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 $35,000 during the year. j. Collected $835,000 in cash from customers during the year for credit sales previously recorded k. At year-end, accrued $54,000 of interest on the note due to Oglesby National Bank 1. 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)