B- The following information pertains to Nour Company:

1- Equipment was purchased on July 1, 2018 for $140,000. It is useful life is 5 years and it can be sold after the 5 years for $20,000.

2- Building was purchased on January 1, 2018 for $200,000. It is useful life is 20 years and depreciated on a reducing balance rate of 10%.

3- Furniture was purchased on April 1, 2017 for $80,000. Its salvage value is $20,000 and depreciated on a straight-line balance rate of 20%.

4- On December 31, 2019 the balance of Receivables was $110,000 and the balance of Allowance of irrecoverable receivables was $14,000. Before adjusting the accounts, Nour finds that receivables of $10,000 need to be written off as irrecoverable, and the allowance for receivables is to be set at ten percent of the remaining outstanding receivables as at 31 December 2019.

Required:

1- Prepare the necessary adjusting entries in Nour Company at the end of its fiscal year, Dec 31, 2019. Show your calculations

2- Prepare a partial income statement and a partial balance sheet for the year ended December 31,2019 to show the effect of the adjusting entries on these statements (Show you computations)

(16.5 marks)