McGuire Corporation began operations in 2018 The company purchases computer equipment from manufacturers and then sells to retail stores During 2018, the bookkeeper used a check register to record all cash receipts and cash disbursements No other journals were used The following is a recap of the cash receipts and disbursements made during the year Cash receipts Sale of common stock $ 55,000 Collections from customers 295,000 Borrowed from local bank on April 1, note signed requiring principal and interest at 12 to be paid on March 31, 2019 29,000 Total cash receipts $ 379,000 Cash disbursements Purchase of merchandise $ 182,500 Payment of salaries and wages 68,500 Purchase of office equipment 33,000 Payment of rent on building 9,250 Miscellaneous expenses 10,700 Total cash disbursements $ 303,950 You are called in to prepare financial statements at December 31, 2018 The following additional information was provided to you Customers owed the company $16,500 at year end At year end, $27,650 was still due to suppliers of merchandise purchased on credit At year end, merchandise inventory costing $43,400 still remained on hand Salaries and wages owed to employees at year end amounted to $4,350 On December 1, $2,250 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 10 year life and no salvage value, was purchased on January 1, 2018 Straight line depreciation 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 )

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McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells to retail stores. During 2018, the bookkeeper used a

McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells to retail stores. During 2018, the bookkeeper used a check register to record all cash receipts and cash disbursements. No other journals were used. The following is a recap of the cash receipts and disbursements made during the year.


Cash receipts:
Sale of common stock	$	55,000
Collections from customers		295,000
Borrowed from local bank on April 1, note signed requiring
principal and interest at 12% to be paid on March 31, 2019		29,000
Total cash receipts	$	379,000
Cash disbursements:
Purchase of merchandise	$	182,500
Payment of salaries and wages		68,500
Purchase of office equipment		33,000
Payment of rent on building		9,250
Miscellaneous expenses		10,700
Total cash disbursements	$	303,950

You are called in to prepare financial statements at December 31, 2018. The following additional information was provided to you:

Customers owed the company $16,500 at year-end.
At year-end, $27,650 was still due to suppliers of merchandise purchased on credit.
At year-end, merchandise inventory costing $43,400 still remained on hand.
Salaries and wages owed to employees at year-end amounted to $4,350.
On December 1, $2,250 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 10-year life and no salvage value, was purchased on January 1, 2018. Straight-line depreciation 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.)