accounting

Additional information is provided for use in preparing the company's adjustments: 1. Closing inventory is valued at $65,000. 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 2018 amount to $2,600. 5. On 1st April 2018 Adam paid $3,000 for insurance which was valid until 31st March 2019. 6. Irrecoverable receivables of $1,600 need to be write off. 7. Adam decides to increase allowance for receivables to $5,000. Required: 1. Make the end-of-period adjustments entries (10.8 Marks) 2. Prepare Adam's income statement for the year ended December 31, 2018. (10.8 Marks) 3. Prepare Adam's balance sheet as at December 31, 2018. (8.4 Marks) (30 marks)