Problem 2-10 (Algo) Accrual accounting; financial statements [LO2-5, 2-7, 2-9) 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 $ 47,500 285,000 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 27, eee $ 359,500 ces $177,500 65,500 28,500 8,750 10,100 $ 290, 358 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 $15,500 at year-end 2. At year-end, $26.950 was still due to suppliers of merchandise purchased on credit 3. At year-end, merchandise inventory costing $42,200 still remained on hand. 4. Salaries owed to employees at year-end amounted to $4,050 5. On December 1, $1,950 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 Complete this question by entering your answers in the tabs below. Income Statement Balance Sheet