(Solved): Please need help with the balance sheet. Following are the transactions and adjustments that o ...

Please need help with the balance sheet.

Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 191,000 shares of $\$5$-par-value common stock for $\$955,000$ in cash. b. Borrowed $\$510,000$ from Oglesby National Bank and signed a $10\%$ 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 $\$900,000$, all on credit. f. Paid rent of $\$110,000$ 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 $\$620,000$ 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 $\$51,000$ of interest on the note due to Oglesby National Bank. I. 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.) Reminder: Increases to expenses should be entered as negative numbers to show the impact on net income. See Exhibit 4.3 .