B291/BB293 Question 1: Adam owns a small business selling home electronics. Below is the company's unadjusted trial balance dated December 31, 2020. Sales Sales Return Account Name Opening inventory Purchases Purchases return Non-Current assets at cost: Freehold property Equipment Motor Vehicles Accumulated depreciation on: Equipment Motor vehicles Salaries and wages Insurance Advertising expenses Motor expenses Loan interest Receivables Allowances for receivables Payables Cash at bank Bank loan Capital Trial Balance Debit $ 10,200 57,600 151,200 90,000 28,800 16,800 8,400 3,600 5,400 1,800 4,800 43,200 186,600 Credit S 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: 384,000 19,200 1. Prepare Adam's income statement for the year ended December 31st, 2020. 2. Prepare Adam's balance sheet as at December 31st, 2020. 7,200 6,000 2,400 33,600 608,400 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. 60,000 96,000 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. 608,400

Question 1: Adam owns a small business selling home electronics. Below is the company's unadjusted trial balaace dated December 31,2020. Additumar unornauvu us provaed ror 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 roducing balance basis. 4. Accrued wages at the end of 2017 amount to $1,560. 5. On 1th April 2017 Adsm paid $1,800 for insurance which was valid until 31n 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 cnded December 314,2020. 2. Prepare Adam's balance sheet as at December 31H,2020. Question 2 Hussain owas a small business selling coffeo makers to other businesses, On 31 * December 2019 he extracted the following trial balance. The following information is relevant. 1. Closing inventory was valued at $98,000. 2. Equipment is depreciated by 10% on Straight line basis. 3. Motor vehicles are depeeciated by 20% on reducing balance basis. 4. Accoued wages at the end of 2019 amount to $2,100. 5. On 1 November 2019 Hussain paid $560 for insunce which is valid until 31 Oetober 2020. 6. Irecovetable receivables of $4,200 need to be written off. 7. Husstin decides to increase the ullowance for receivable for five percent of the remaining outstanding roceivables. 8. Hussain has taken goods worth $2,660 for his own use. Required: a. Prepsere Hussain's income statenient for the year ending 31" Decenber 2019. b. Prepare Hussain's balance sheet as at Decesaber 2019