McGulre Corporation began operations In 2018. The company purchases computer equipment from manufacturers and then sells...

McGulre Corporation began operations In 2018. The company purchases computer equipment from manufacturers and then sells to retall stores. During 2018, the bookkeeper used a check register to record all cash recelpts and cash disbursements. No other Journals were used. The following is a recap of the cash recelpts and disbursements made during the year. Cash receipts Sale of common stock Collections from customers Borrowed from local bank on April 1, note signed requiring $ 7e,888 325,8e8 principal and interest at 12% to be paid on March 31, 2019 Total cash receipts 35,888 $ 43e,8ee Cash disbursements: Purchase of merchandise Payment of salaries and wages Purchase of office equipment Payment of rent on building Miscellaneous expenses $ 197,5ee 77,588 42,888 18,758 12,588 S 34e,258 Total cash disbursements You are called In to prepare financial statements at December 31, 2018. The following additional Information was provided to you 1. Customers owed the company $19,500 at year-end. 2. At year-end, $29,750 was still due to suppliers of merchandise purchased on credit. 3. At year-end, merchandise Inventory costing $47,000 still remalned on hand. 4. Salarles and wages owed to employees at year-end amounted to $5,250. 5. On December 1, $3,300 In rent was pald to the owner of the building used by McGulre. This represented rent for the months of December through February 6. The office equipment, which has a 10-year life and no salvage value, was purchased on January 1, 2018. Straight-line depreclation is used.

Required: Prepare an Income statement for 2018 and a balance sheet as of December 31, 2018. (For Balance Sheet only, Items to be deducted must be Indicated with a negative amount.)