Problem 2-10 (Static) 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. $ 50,000 320,000 40,000 $ 410,000 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 $ 220,000 80,000 30,000 14,000 10,000 $ 354,000 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 $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 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 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 the 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 Prepare an income statement for 2021. MCGUIRE CORPORATION Income Statement For the Year Ended December 31, 2021 0 0 0 Income Statement Balance Sheet > McGUIRE CORPORATION Balance Sheet At December 31, 2021 Assets 0 $ Liabilities & Shareholders' Equity 0 $ 0