McGuire Corporation began operations in 2021. The company purchases computer equipment from manufacturers and then sells to retail stores. During 2021, 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: Issue of common stock Collections from customers Borrowed from local bank on April 1, note signed requiring principal and interest at 12% to be paid on March 31, 2022 Total cash receipts Cash disbursements: Purchase of merchandise Payment of salaries Purchase of office equipment Payment of rent on building Miscellaneous expense Total cash disbursements $ 30,000 250,000 20,000 $ 300,000 $ 160,000 55,000 18,000 7,000 8,000 $ 248,000 You are called in to prepare financial statements at December 31, 2021. The following additional information was provided to you: 1. Customers owed the company $12,000 at year-end. 2. At year-end, $24,500 was still due to suppliers of merchandise purchased on credit. 3. At year-end, merchandise inventory costing $38,000 still remained on hand. 4. Salaries owed to employees at year-end amounted to $3,000. 5. On December 1, $900 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, 2021. Straight-line depreciation is used. Required: Prepare an income statement for 2021 and a balance sheet as of December 31, 2021.