Prepare an income statement (ignoring income taxes) for K is sick Co s first year of operations and a balance sheet as of the end of the year Issued 197,000 shares of $5-par-value common stock for $985,000 in cash Borrowed $540,000 from Oglesby National Bank and signed a 10% note due in two years Incurred and paid $390,000 in salaries for the year d Purchased $650,000 of merchandise inventory on account during the year Sold inventory costing $580,000 for a total of $920,000 all on credit Paid rent of $110,000 on the sales facilities during the first 11 months of the year Purchased $170,000 of store equipment, paying $53,000 in cash and agreeing to pay the difference within 90 days Paid the entire $117,000 owed for store equipment and $620,000 of the amount due to suppliers for credit purchases previously recorded Incurred and paid utilities expense of $35 000 during the year) Collected $835,000 in cash from customers during the year for credit sales previously recorded At year-end accrued $54,000 of interest on the note due to Oglesby National Bank At year-end accrued S10.000 of past-due December rent on the sales facilities