McGulre Corporation began operations In 2018. The company purchases computer equipment from manufacturers and then sells to retall stores. During 2018, the bookkeeper used a check register to record all cash recelpts and cash disbursements. No other Journals were used. The following is a recap of the cash recelpts and disbursements made during the year. Cash receipts Sale of common stock Collections from customers Borrowed from local bank on April 1, note signed requiring $ 7e,888 325,8e8 principal and interest at 12% to be paid on March 31, 2019 Total cash receipts 35,888 $ 43e,8ee Cash disbursements: Purchase of merchandise Payment of salaries and wages Purchase of office equipment Payment of rent on building Miscellaneous expenses $ 197,5ee 77,588 42,888 18,758 12,588 S 34e,258 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 $19,500 at year-end. 2. At year-end, $29,750 was still due to suppliers of merchandise purchased on credit. 3. At year-end, merchandise Inventory costing $47,000 still remalned on hand. 4. Salarles and wages owed to employees at year-end amounted to $5,250. 5. On December 1, $3,300 In rent was pald to the owner of the building used by McGulre. 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 depreclation 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.)