1. Prepare an income statement ignoring income taxes, for the first year of operations and a balance sheet for the end of the year

2. Prepare T account for cash account since it affects most of the transactions

3 Provide a brief written evaluation of Kissick Co's results from operations for the year and its financial position at the end of the year. In your opinion, what are the likely explanations for the company's net loss?

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Issued 800,000 shares of $5-par-value common stock for $400,000 in cash. Borrowed $200,000 from Oglesby National Bank and signed a 8% note due in three yea Incurred and paid $160,000 in salaries for the year. Purchased $301,000 of merchandise inventory on account during the year. Sold inventory costing $250,000 for a total of $205,000, all on credit. Paid rent of $44,000 on the sales facilities during the first 11 months of the year. Purchased $60,000 of store equipment, paying $18,000 in cash and agreeing to pay the difference within 90 days. Paid the entire $42,000 owed for store equipment and $227,000 of the amount due to suppliers for credit purchases previously recorded. Incurred and paid utilities expense of $15,000 during the year. Z Collected $221,000 in cash from customers during the year for credit sales previously recorded. k. 1. At year-end, accrued $16,000 of interest on the note due to Oglesby National Bank. At year-end, accrued $4,000 of past-due December rent on the sales facilities. Issued 800,000 shares of $5-par-value common stock for $400,000 in cash. Borrowed $200,000 from Oglesby National Bank and signed a 8% note due in three yea Incurred and paid $160,000 in salaries for the year. Purchased $301,000 of merchandise inventory on account during the year. Sold inventory costing $250,000 for a total of $205,000, all on credit. Paid rent of $44,000 on the sales facilities during the first 11 months of the year. Purchased $60,000 of store equipment, paying $18,000 in cash and agreeing to pay the difference within 90 days. Paid the entire $42,000 owed for store equipment and $227,000 of the amount due to suppliers for credit purchases previously recorded. Incurred and paid utilities expense of $15,000 during the year. Z Collected $221,000 in cash from customers during the year for credit sales previously recorded. k. 1. At year-end, accrued $16,000 of interest on the note due to Oglesby National Bank. At year-end, accrued $4,000 of past-due December rent on the sales facilities.