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Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co a. Issued 197,000 shares of $6-par-value common stock for $1,182,000 in cash. b. Borrowed $520,000 from Oglesby National Bank and signed a 10% note due in three years c. Incurred and paid $380,000 in salaries for the year d. Purchased $690,000 of merchandise inventory on account during the year e. Sold inventory costing $580,000 for a total of $910,000, all on credit. f. Paid rent of $330,000 on the sales facilities during the first 11 months of the year g. Purchased $180,000 of store equipment, paying $52,000 in cash and agreeing to pay the difference within 90 days h. Paid the entire $128,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded i. Incurred and paid utilities expense of $34,000 during the year j. Collected $835,000 in cash from customers during the year for credit sales previously recorded. k. At year-end, accrued $52,000 of interest on the note due to Oglesby National Bank. l. At year-end, accrued $30,000 of past-due December rent on the sales facilities. Required a. Prepare an income statement (ignoring income taxes) for Kissick Co.'s first year of operations and a balance sheet as of the end of the year. (Hint: You may find it helpful to prepare T- accounts for each account affected by the transactions.) KISSICK CO Income Statement t of goods sold Gross profit alaries expense nt expense tilities expense 0 0 oss from operations expense t loss (Amounts to be deducted and net loss should be indicated with minus sign.) KISSICK CO Balance Sheet Assets: Cash Accounts receivable Merchandise inventory Total current assets 0 Total assets Liabilities: Accounts payable Rent payable Interest payable 0 Total current liabilities Total liabilities Stockholders' Equity: Common stock Deficit/Net loss 0 Total Stockholders' equity Total liabilities and stockholders' equity$ 0

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