Financial information for the year ending December 31 2020 for "Grace Company" is provided in the second tab in the excel file called "Assignment 2 General Ledger". The books are only closed at the end of the year (meaning items such as depreciation are only posted at year end). The following items have yet to be reflected in the General Ledge:

Other information:

A. The Note Receivable was issued on April 1st 2020. Interest of 15% per year and principal are due on March 31 2021.

B. Depreciation for the year for the building is $850.

C. The bank statement was received in early January of the following year. The bank statement showed items that were not reflected in the General Ledger:

a. A cheque was returned for $500. This related to a sale. It is most likely that this amount will be collected in the near future.

b. The bank charged $20 in service charges for the month of December.

c. A cheque to pay an accounts payable in the amount $450 was incorrect posted as $540

D. The $4,200 in the Prepaid Expense represents a transaction posted on November 1 for the prepayment of rent for November, December and January.

E. The $3,600 in Deferred Revenues represents funds received in November for work performed in December ($1,100) and work to be performed in January ($2,500)

F. The $700 in Wages payable was posted in December 31 2019 for wages incurred in 2019 but paid in 2020.

G. $1,000 in wages was paid on January 5, 2021: $400 related to December 2020 and $600 for January 2021

H. A $260 invoice was received on January 21 2021 for Hydro the period December 15 2020 to January 15 2021

Required

In the file provided "Assignment 3 General Ledger", record each of the transactions as they relate to the year ended December 31, 2020.

Prepare an Income Statement and Balance Sheet.