Problem 4-24 (Algo) Prepare an income statement and balance sheet from transaction data LO 4-1 Following are the transactions and adjustments that occurred during the first year of operations at Kissick Company. a. Issued 198,000 shares of $4-par-value common stock for $792,000 in cash. b. Borrowed $540,000 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 $670,000 of merchandise inventory on account during the year. e. Sold inventory costing $580,000 for a total of $920,000, all on credit. f. Paid rent of $220,000 on the sales facilities during the first 11 months of the year. g. Purchased $160,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days. h. Paid the entire $109,000 owed for store equipment and $610,000 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 $835,000 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. 1. At year-end, accrued $20,000 of past-due December rent on the sales facilities. Required: a. Prepare an income statement (ignoring income taxes) for Kissick Company'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.) Reminder: Increases to expenses should be entered as negative numbers to show the impact on net income. See Exhibit 4.3.