In 2019, two friends, Boomer and Sooner opened an OU souvenir store on Campus Corner. During the year, the owners recorded the following cash receipts and payments:

Cash receipts:
Issue of common stock	$	42,500
Collections from customers		275,000
Borrowed from local bank on April 1, note signed requiring
principal and interest at 12% to be paid on March 31, 2020		25,000
Total cash receipts	$	342,500
Cash payments:
Purchase of merchandise	$	172,500
Payment of salaries		62,500
Purchase of office equipment		25,500
Payment of rent on building		8,250
Miscellaneous expense		9,500
Total cash payments	$	278,250

Boomer and Sooner ask you to prepare the December 31, 2019, financial statements. Additional information was provided to you:

1. Customers owed the company $14,500 at year-end.
2. At year-end, $26,250 was still due to suppliers of merchandise purchased on credit.
3. At year-end, merchandise inventory costing $41,000 still remained on hand.
4. Salaries owed to employees at year-end amounted to $3,750.
5. On December 1, $1,650 in rent was paid to the owner of the building used by the company. 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, 2019. Straight-line depreciation is used.

Prepare an income statement for 2019 and a balance sheet as of December 31, 2019.