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 $550,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $400,000 in salaries for the year. d. Purchased $690,000 of merchandise Inventory on account during the year. e. Sold Inventory costing $590,000 for a total of $910,000, all on credit f. Pald rent of $220,000 on the sales facilities during the first 11 months of the year. g. Purchased $190,000 of store equipment, paying $52,000 in cash and agreeing to pay the difference within 90 days. h. Pald the entire $138,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. 1. Incurred and paid utilities expense of $34,000 during the year. J. Collected $825,000 in cash from customers during the year for credit sales previously recorded. k. At year-end, accrued $60,500 of Interest on the note due to Oglesby National Bank L. At year-end, accrued $20,000 of past-due December rent on the sales facilities. ces 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. Balance Sheet Assets: Cash Accounts receivable Merchandise inventory Total current assets Equipment Total assets Liabilities: Accounts payable ! Interest payable Rent payable 0 TO Total current liabilities Notes payable Total liabilities Stockholders' Equity: Common stock S 0 1 Total Stockholders' equity Total liabilities and stockholders' equity S