Mechatronic produces industrial machinery and at the end of 2019 has the balance sheet shown in the table.

Prepare balance sheet and the income statement of 2020, considering the following events.

Assets 2019

Liabilities and Shareholders' Equity 2019

Fixed assets

Paid-in capital

400.000

Equipment

1.120.450

Retained earnings

292.000

Net income

30,250

Current assets

Allowance for warranties

106,000

Inventory of direct materials

125.000

Allowance for severance indemnities

156,200

Inventory of WIP

365.000

Short term bank payable

260,000

Inventory of final products

52.000

Long term bank payable

650,000

Accounts receivables

320.000

Accounts payable

165.000

Cash

77.000

Total

2.059.450

Total

2.059.450

Consider that all the labor costs of 2020 are 100% cash paid.No allowance for severance indemnities occurred in 2020.

Cost services are cash paid, too.

Tangible fixed assets of the balance sheet are shown with the net value (tangible fixed assets at cost minus accumulated depreciation).

Making accounting recordings, prepare the income statement (Cost of sales classification) and the balance sheet of the 2020 with T accounts.