Balance Sheet & Income Statement Coastline Ltd., which has just started trading on 1 January 2020, has the following account balances prior to the recording of the final month of the year: Account Balances as at 30 November 2020 Account Cash Accounts receivable Stock of Supplies Rent Property, Plant & Equipment - cost Accounts payable Bank Loan Contributed capital (16 600 shares) Sales revenue Other expenses (excluding depreciation) Wages Cost of goods sold RM 5.000 3,400 17,600 3,300 42.000 4,700 15,000 28,600 70,000 4,000 5,000 38.000 In December 2020, the following transactions took place: 1. Credit sales $15.000 (cost of goods sold $7.000) 2. Credit purchases of goods $8,000 3. Cash sales $24.000 (cost of goods sold $15,000) 4. Paid rent for December $300 5. Paid wages of $1,800 6. Received $15,000 from debtors. 7. At the end of December, sold off an equipment that has costed $4.000 at the price of $3,500. The yearly depreciation expense of this equipment was $1,000. Additional information as below: 1. As at 31 December, the business was still owing $2,200 of wages to the staff. 2. Annual depreciation expense for the property, plant & equipment before the disposal of the equipment at transaction 7 was $9,000. Required: 1. Record the Account balances prior to adjustments in the workbook. Then, calculate and record the Adjustments in the workbook, total and balance the workbook. [3 marks] 2. Prepare a properly constructed Balance Sheet and Income Statement. [2 marks]