Additional information is provided for use in preparing the companys 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

2- Adam owns a small business selling home electronics. Below is the company's unadjusted trial balance dated December 31, 2020. 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 3 2. Prepare Adam's balance sheet as at December 31st,2020