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	$	52,500
Collections from customers		290,000
Borrowed from local bank on April 1, note signed requiring
principal and interest at 12% to be paid on March 31, 2022		28,000
Total cash receipts	$	370,500
Cash payments:
Purchase of merchandise	$	180,000
Payment of salaries		67,000
Purchase of office equipment		31,500
Payment of rent on building		9,000
Miscellaneous expense		10,400
Total cash payments	$	297,900

Boomer and Sooner ask you to prepare the December 31, 2021, financial statements. Additional information was provided to you:

1. Customers owed the company $16,000 at year-end.
2. At year-end, $27,300 was still due to suppliers of merchandise purchased on credit.
3. At year-end, merchandise inventory costing $42,800 still remained on hand.
4. Salaries owed to employees at year-end amounted to $4,200.
5. The cash paid for rent includes $2,100 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.