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

• Issued 191,000 shares of $5-par-value common stock for $955,000 in cash.
• Borrowed $510,000 from Oglesby National Bank and signed a 11% note due in three years.
• Incurred and paid $390,000 in salaries for the year.
• Purchased $650,000 of merchandise inventory on account during the year.
• Sold inventory costing $590,000 for a total of $910,000, all on credit.
• Paid rent of $330,000 on the sales facilities during the first 11 months of the year.
• Purchased $170,000 of store equipment, paying $54,000 in cash and agreeing to pay the difference within 90 days.
• Paid the entire $116,000 owed for store equipment and $610,000
• 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 $56,100 of interest on the note due to Oglesby National Bank.
• At year-end, accrued $30,000 of past-due December rent on the sales facilities.

1. 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.)
2. Prepare 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.)