Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 195,000 shares of $6-par-value common stock for $1,170,000 in cash. Borrowed $530,000 from Oglesby National Bank and signed a 12% note due in three years. Incurred and paid $410,000 in salaries for the year. Purchased $730,000 of merchandise inventory on account during the year. Sold inventory costing $570,000 for a total of $910,000, 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 $54,000 in cash and agreeing to pay the difference within 90 days. Paid the entire $116,000 owed for store equipment and $610,000 of the amount due to suppliers for credit purchases previously recorded. Incurred and paid utilities expense of $35,000 during the year. Collected $855,000 in cash from customers during the year for credit sales previously recorded. At year-end, accrued $63,600 of interest on the note due to Oglesby National Bank. At year-end, accrued $10,000 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 a T-account for the Cash account since it is affected by most of the transactions.)

An income statement and balance sheet are needed to be created