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: $50,000 Sale of common stock Collections from customers 320,000 40,000 Borrowed from local bank on April 1, note signed requiring principal and interest at 12% to be paid on March 31, 2019 $410,000 Total cash receipts Cash disbursements: $220,000 Purchase of merchandise Payment of salaries and wages 80,000 Purchase of office equipment 30,000 Payment of rent on building 14,000 Miscellaneous expenses 10,000 $354,000 Total cash disbursements 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 $22,000 at year-end. 2. At year-end, $30,000 was still due to suppliers of merchandise purchased on credit. 3. At year-end, merchandise inventory costing $50,000 still remained on hand 4. Salaries and wages owed to employees at year-end amounted to $5,000. 5. On December 1, $3,000 in rent was paid to the owner of the building used by MeGuire. 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