Hussain owns a small business selling coffee makers to other businesses. On 31st December 2019 he extracted the following trial balance. Debit $ Credit $ 690,200 Account Name Sales Revenue Sales returns Opening inventory Purchases 4,200 103,600 450,800 Purchase returns 1540 Freehold property 280,000 35,000 Equipment at cost Accumulated depreciation on equipment 3,500 Motor vehicle 56,000 11,200 Accumulated depreciation on motor vehicle Salaries and Wages 13,300 1,680 Insurance Motor expenses Advertising expenses 4,760 1,400 Loan interest 6,300 91,000 Receivables Allowance for receivables 4,200 Font Vatagan 9 10 1311-12 1 13 14 15 Allowance for receivables 4,200 Payables 79,800 Cash at bank 15,400 Bank loan 63,000 210,000 Capital Total 1,063,440 1,063,440 8291 / THE Final of 9 2020-2021/Fall 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 depreciated by 20% on reducing balance basis 4. Accrued wages at the end of 2019 amount to $2,100 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 depreciated by 20% on reducing balance basis. 4. Accrued wages at the end of 2019 amount to $2,100. 5. On 1 November 2019 Hussain paid $560 for insurance which is valid until 31 October 2020. 6. Irrecoverable receivables of $4,200 need to be written off. 7. Hussain decides to increase the allowance for receivable for five percent of the remaining outstanding receivables. 8. Hussain has taken goods worth $2,660 for his own use. Required: a. Prepare Hussain's income statement for the year ending 31st December 2019. b. Prepare Hussain's balance sheet as at December 2019. (10+10 - 20 Marks)