Ahmed owns a small business selling furniture. Here is the trial balance in respect of the year ended December 31,2020, Account Name Trial balance Debit (3)Credit (S) Sales 180.600 Sales returns Opening inventory 11.750 Purchases 90,360 Purchase returns 3.000 Freehold property 42,000 New motor vehicle (trade-in-deducted) 12.500 Equipment at cost 15,000 Accumulated depreciation on equipment Old motor vehicle at cost Accumulated depreciation on old motor vehicle Salaries and wages 5.450 Insurance 1.000 Motor expenses Advertising expenses Loan interest 2,000 Receivables Allowance for receivables Payables 16.250 Cash at bank Bank loan 18.000 Capital 60,800 288.550 280.550 The following information is relevant: 1. Closing inventory was valued at $17,300. 2. Equipment is depreciated by 25% on reducing balance basis. 3. Motor vehicles are depreciated by 20% on straight- line basis. 4. On 31 May 2012 Ahmed traded in his motor vehicle for a new one. The new motor vehicle cost $21,000 and the trade-in value of the old motor vehicle was $8,500. At the time Ahmed acquired the new motor vehicle, he recorded a cash payment of $12,500 against a new motor vehicle account. No other entries have yet been made regarding this transaction 5. Accrued wages at the end of 2020 amount to 1,100. 6. On 1 August 2020 Ahmed paid $600 for insurance which is valid until 31 July 2021. 7. Irrecoverable receivables of $500 need to be written off. 8. Ahmed decides to increase the allowance for receivables by S400. Required: 1. Prepare Adam's income statement for the year ended December 31", 2020. 2. Prepare Adam's balance sheet as at December 31, 2020