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 T-accounts for each account affected by the transactions.) (Amounts to be deducted and net loss should be indicated with minus sign.)

a.

Issued 194,000 shares of $5-par-value common stock for $970,000 in cash.

b.

Borrowed $540,000 from Oglesby National Bank and signed a 11% note due in two years.

c.

Incurred and paid $390,000 in salaries for the year.

d.

Purchased $740,000 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 $220,000 on the sales facilities during the first 11 months of the year.

g.

Purchased $170,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days.

h.

Paid the entire $119,000 owed for store equipment, and $590,000 of the amount due to suppliers for credit purchases previously recorded.

i.

Incurred and paid utilities expense of $38,000 during the year.

j.

Collected $825,000 in cash from customers during the year for credit sales previously recorded.

k.

At year-end, accrued $59,400 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.

KISSICK CO.
Income Statement
Sales	$900,000
Cost of goods sold	580,000
Gross profit	$320,000
Salaries expense	390,000
Rent expense	240,000
Utilities expense	38,000
Loss from operations	$(348,000)
Interest expense	(59,400)
Net loss	$(407,400)

KISSICK CO.
Balance Sheet
Assets:
Cash
Accounts receivable
Merchandise inventory
Total current assets	0
Equipment	170,000
Total assets	$170,000
Liabilities:
Accounts payable
Rent payable	20,000
Interest payable
Total current liabilities	20,000
Total liabilities	$20,000
Owners' Equity:
Common stock
Deficit/Net loss
Total owners' equity	0
Total liabilities and owners' equity	$20,000

The income statement is complete and correct, but I can't figure out the balance sheet. What is on there is correct, I just can't figure out what amount should be in each box.