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In: AccountingBelow are the transactions and adjustments that occurredduring the first year of operations at Kissick...Below are the transactions and adjustments that occurredduring the first year of operations at Kissick CoIssued 192,000 shares of $5-par-value common stock for$960,000 in cash.Borrowed $530,000 from Oglesby National Bank and signed a 10%note due in three years.Incurred and paid $390,000 in salaries for the year.Purchased $710,000 of merchandise inventory on account duringthe year.Sold inventory costing $580,000 for a total of $920,000, allon credit.Paid rent of $110,000 on the sales facilities during the first11 months of the year.Purchased $190,000 of store equipment, paying $51,000 in cashand agreeing to pay the difference within 90 days.Paid the entire $139,000 owed for store equipment and $590,000of the amount due to suppliers for credit purchases previouslyrecorded.Incurred and paid utilities expense of $37,000 during theyear.Collected $855,000 in cash from customers during the year forcredit sales previously recorded.At year-end, accrued $53,000 of interest on the note due toOglesby National Bank.At year-end, accrued $10,000 of past-due December rent on thesales facilities.Required:a. Prepare an income statement (ignoring income taxes) forKissick Co.'s first year of operations and a balance sheet as ofthe end of the year. (Hint: You may find it helpful to prepareT-accounts for each account affected by the transactions.)(Amounts to be deducted and net loss should be indicated withminus sign.)