In 2021, 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. Collections from customers Borrowed from local bank on April 1, note signed requiring principal and interest at 12% to be paid on March 31, 2022 Total cash receipts Cash payments: Purchase of merchandise Payment of salaries $ 72,500 330,000 36,000 $438,500 $200,000 79,000 43,500 11,000 12,800 $346,300 Purchase of office equipment Payment of rent on building Miscellaneous expense Total cash payments Boomer and Sooner ask you to prepare the December 31, 2021, financial statements. Additional information was provided to you: 1. Customers owed the company $20,000 at year-end. 2. At year-end, $30,100 was still due to suppliers of merchandise purchased on credit. 3. At year-end, merchandise inventory costing $47,600 still remained on hand. 4. Salaries owed to employees at year-end amounted to $5,400. 5. The cash paid for rent includes $3,450 paid on December 1 to the owner of the building used by the company. The amount paid on December 1 was rent for the months of December, January, and February. 6. The office equipment, which has a 10-year life and no salvage value, was purchased on January 1, 2021. Straight-line depreciation is used. Required: Prepare an income statement for 2021 and a balance sheet as of December 31, 2021.