Question

Need both the income statement and the balance sheet please!

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. $ 32,500 255,000 21,000 $ 308,500 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 $ 162,500 56,500 19,500 7,250 8,300 $ 254,050 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 $12,500 at year-end. 2. At year-end, $24,850 was still due to suppliers of merchandise purchased on credit. 3. At year-end, merchandise inventory costing $38.600 still remained on hand. 4. Salaries owed to employees at year-end amounted to $3.150. 5. On December 1, $1,050 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.

Answer 1

From the given data: Page-1 In come statement for the period ended on December 31, 2021 which is are given :- - MG corporation Income statement For the period ended on Dec 31, 2021 Particulars | Amount Amount Revenilesz sales to customers $267,500 16$255,000+ $12,500): Less; Expences cost of Goods sold ($162,500+$260,850-$38,600) $148,750 salaries and wages Ideas ($56500+$3,150) $59,650 Rent expenses $6,550 ($7,250-331,050:3)x2)$61530 miscellaneous experise $8,300 Depreciation ($19,500 =10) $1,950 Intrest Expense deseo $21,000x12% X912) PN | Total expenses 227,090 Net income $40,4101

page-2 Balance sheet for the period ended on December 31,2021 which as follows: ma corporation | Balance sheet For the peñod ended on Dec 31, 2021 | Amount Amount Assets current Assets :- |Accounts receivable $12,500 merchandise Pnventory $38,600 prepaid rent ($1050:39x2] $700 cash | 208,500-$254,000) $541450 Total arent assets $106,250 Property and equipment: office equipment $19,500 Less:Accumulated depreciation $1,950 Total property Siequip $17550 | Total assets 123,800

Page 3 Amount Amount Liabilities | current liabilities; | Accounts payable $241850 salaries and wages payable $3,150 Interest payable to local bankte C$21,000x12%x9:120 $11890 I Note payable $21,000 Total current assets $50,890 share bolder's equity: Lcommon stock $32500 Retained eamings les CamingS S ballo Total shareholder's equity $72,910 Total lPabilities $123,800 - x -