McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells it to retail stores. During 2018, the bookkeeper used a check register to record all cash receipts and disbursements. No other magazines were used. 

The following is a summary of the cash inflows and outflows made during the year.

Cash Receipts:
Sale of Common Stock	ps	67,500
customer collections		320.000
Borrowed from local bank on April 1, signed note requiring
principal and interest at 12% to be paid on March 31, 2019		34,000
Total cash inflows	ps	421,500
Cash disbursements:
purchase of goods	ps	195.000
Payment of wages and salaries		76,000
Purchase of office equipment		40.500
Payment of rent in the building.		10,500
Miscellaneous expenses		12,200
Total cash disbursements	ps	334,200

You are called upon to prepare financial statements as of December 31, 2018. You were provided with the following additional information:

Customers owed the company $19,000 at the end of the year.

At the end of the year, $29,400 was still owed to suppliers of merchandise purchased on credit.

At the end of the year, merchandise inventory costing $46,400 was still available.

Wages and salaries owed to employees at year-end were $5,100.

On December 1, $3,150 in rent was paid to the owner of the building used by McGuire. This represented rent for the months of December through February.

The office equipment, which has a useful life of 10 years and has no salvage value, was purchased on January 1, 2018. Straight-line depreciation is used.

Required:

Prepare an income statement for the year 2018 and a balance sheet as of December 31, 2018.