After you have recorded all David's transactions (Part 1) in a worksheet, you realise that the worksheet may not be the best way to present the information to David. You decide to draw up an Income Statement and a Balance Sheet from your worksheet data instead, to concisely summarise the financial performance and the financial position of MicroSystems. You arrange to meet with David for another coffee, armed with your pre-prepared statements and ready to answer questions with your knowledge of accounting so far. List of Accounts and Balances (from Part 1): Account Balance $ Accounts Payable 27 000 Accounts Receivable 34 280 Accrued Expenses 2 750 Accum. Depn - Fixtures & Fittings (125) Accum. Depn - Motor Vehicles (250) Advertising Expense 2 800 Allowance for Doubtful Debts (1 714) Bank Overdraft 520 Cleaning Expense 140 Contributed Capital 24 000 Cost of Goods Sold 30 650 Depreciation Expense 375 Doubtful Debts Expense 1 714 Drawings (7 200) Electricity Expense 1 900 Fixtures & Fittings 12 000 Insurance Expense 350 Interest Expense 300 Interest Payable 300 Inventory 21 860 Loan 60 000 Maintenance & Repairs Expense 230 Motor Vehicles 24 000 Office Equipment 890 Prepaid Insurance 3 850 Prepaid Rent 25 000 Rent Expense 5 000 Sales 58 750 Telecommunications Expense 850 Training Expense 120 Wages Expense 2 850 Wages Payable 950 : a) Prepare an Income Statement (Statement of Financial Performance) for the month ending 31 July 2021. b) Prepare a classified Balance Sheet (Statement of Financial Position) in the vertical format using the proprietary approach, as at 31 July 2021. 3