McGuire Corporation began operations in The company purchases computer equipment from manufacturers and then sells to
retail stores. During 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.
You are called in to prepare financial statements on December The following additional information was provided to you:
Customers owed the company $ at yearend.
At yearend, $ was still due to suppliers of inventory purchased on credit.
At yearend, inventory costing $ still remained on hand.
Salaries owed to employees at yearend amounted to $
On December $ in rent was paid to the owner of the building used by McGuire. This represented rent for the months of
December through February.
The office equipment, which has a tenyear life and no salvage value, was purchased on January Straightline depreciation
is used.
Required:
Prepare an income statement for and a balance sheet as of December
