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	$	75,000
Collections from customers		335,000
Borrowed from local bank on April 1, note signed requiring
principal and interest at 12% to be paid on March 31, 2019		37,000
Total cash receipts	$	447,000
Cash disbursements:
Purchase of merchandise	$	202,500
Payment of salaries and wages		80,500
Purchase of office equipment		45,000
Payment of rent on building		11,250
Miscellaneous expenses		13,100
Total cash disbursements	$	352,350

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

1. Customers owed the company $20,500 at year-end.
2. At year-end, $30,450 was still due to suppliers of merchandise purchased on credit.
3. At year-end, merchandise inventory costing $48,200 still remained on hand.
4. Salaries and wages owed to employees at year-end amounted to $5,550.
5. On December 1, $3,600 in rent was paid to the owner of the building used by McGuire. 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, 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.) Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet Prepare an income statement for 2018. MCGUIRE CORPORATION Income Statement For the Year Ended December 31, 2018 5