Reference no: EM131765894

Question: Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co

Issued 199,000 shares of $4-par-value common stock for $796,000 in cash.

Borrowed $540,000 from Oglesby National Bank and signed a 10% note due in three years.

Incurred and paid $420,000 in salaries for the year.

Purchased $740,000 of merchandise inventory on account during the year.

Sold inventory costing $590,000 for a total of $910,000, all on credit.

Paid rent of $330,000 on the sales facilities during the first 11 months of the year.

Purchased $180,000 of store equipment, paying $55,000 in cash and agreeing to pay the difference within 90 days.

Paid the entire $125,000 owed for store equipment and $620,000 of the amount due to suppliers for credit purchases previously recorded.

Incurred and paid utilities expense of $37,000 during the year.

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

At year-end, accrued $54,000 of interest on the note due to Oglesby National Bank.

At year-end, accrued $30,000 of past-due December rent on the sales facilities.

Please assist in developing an Income Statement: and a

Balance Sheet :

Assets

Liabilities

Stockholders Equity