2- Adam owns a small business selling home electronics. Below is the company's unadjusted trial balance dated December 31, 2020. Trial Balance Sales Account Name Sales Return Debit $ Credit $ 384,000 10,200 57,600 151,200 19,200 Opening inventory Purchases Purchases return Non-Current assets at cost: Freehold property 90,000 Equipment 28,800 Motor Vehicles 16,800 Accumulated depreciation on: Equipment 7,200 Motor vehicles 6,000 Salaries and wages 8,400 Insurance 3,600 Advertising expenses 5,400 Motor expenses 1,800 Loan interest 4,800 Receivables 43,200 Allowances for receivables 2,400 Payables 33,600 Cash at bank 186,600 Bank loan 60,000 Capital 96,000 608,400 608,400 Additional information is provided for use in preparing the company's adjustments: 1. Closing inventory is valued at $39,000. 2. Equipment is depreciated by 25% on straight line basis. 3. Motor vehicles are depreciated by 30% on reducing balance basis. 4. Accrued wages at the end of 2017 amount to $1,560. 5. On 1st April 2017 Adam paid $1,800 for insurance which was valid until 31st March 2018. 6. Irrecoverable receivables of $960 need to be write off. 7. Adam decides to increase allowances for receivables to $3,000. 8. Adam has taken goods worth $9,000 for his own use. Required: 1. Prepare Adam's income statement for the year ended December 31st, 2020. 2. Prepare Adam's balance sheet as at December 31st, 2020. Hussain owns a small business selling coffee makers to other businesses. On 31st December 2019 he extracted the following trial balance. Account Name Sales Revenue Debit $ Credit $ 690,200 Sales returns 4,200 Opening inventory 103,600 Purchases 450,800 Purchase returns 1540 Freehold property 280,000 Equipment at cost 35,000 Accumulated depreciation on equipment 3,500 Motor vehicle 56,000 Accumulated depreciation on motor vehicle 11,200 Salaries and Wages 13,300 Insurance 1,680 Motor expenses 4,760 Advertising expenses 1,400 Loan interest 6,300 Receivables 91,000 Allowance for receivables 4,200 Payables 79,800 Cash at bank 15,400 Bank loan Capital Total 63,000 210,000 1,063,440 1,063,440 The following information is relevant. 1. Closing inventory was valued at $98,000. 2. Equipment is depreciated by 10% on Straight line basis. 3. Motor vehicles are depreciated by 20% on reducing balance basis. 4. Accrued wages at the end of 2019 amount to $2,100. 5. On 1 November 2019 Hussain paid $560 for insurance which is valid until 31 October 2020. 6. Irrecoverable receivables of $4,200 need to be written off. 7. Hussain decides to increase the allowance for receivable for five percent of the remaining outstanding receivables. 8. Hussain has taken goods worth $2,660 for his own use. Required: a. Prepare Hussain's income statement for the year ending 31st December 2019. b. Prepare Hussain's balance sheet as at December 2019. =