how to calculate operating expenses?

Minor Activity 1 (2\% of subject mark) Balance Sheet \& Income Statement Eastern Ltd., which has just started trading on 1 January 2019, has the following account balances prior to the recording of the final month of the year: In December 2019, the following transactions took place: 1. Credit purchases of goods $12,000. 2. Credit sales $30,000 (cost of goods sold $16,000 ). 3. Paid wages of $1,000. 4. At the end of December, sold off an equipment that has costed $10,000 at the price of $7,000. The yearly depreciation expense of this equipment was $2,000. 5. Paid rent of $1,200. 6. Paid an amount of interest. 7. Bank loan repayment of $1,000. 8. Paid creditors $6,000. Additional information as below: 1. Operating expenses above include rent and wages but exclude depreciation. The interest rate of the bank loan of $15,000 is 10% per annum. The bank loan was acquired on 1 January 2019. Monthly rental expense is $7200. 2. Annual depreciation expense for the property, plant \& equipment before the disposal of the equipment at transaction 4 was $3,200. 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. Indicate the transaction and additional information number accordingly in the workbook. [3 marks] 2. Prepare a properly formatted Balance Sheet as at 31 December 2019 and Income Statement for the year ended 31 December 2019. [2 marks]