Part 1 - Answer the following questions Question 1 (40 marks ) A- Adam owns a small business selling home electronics . Below is the company's unadjusted trial balance dated December 31 , 2013 Trial Balance Account Name Debit $ Credit Sales 320,000 Sales Return 8,500 Opening inventory 48,000 Purchases 118,500 Purchases return 16,000 Non - Current assets at cost : Property 75,000 Equipment 24,000 Motor Vehicles14,000 Accumulated depreciation on: Equipment 6,000 Motor vehicles 5,000 Salaries and wages 7,000 Insurance 3,000 Advertising expenses 4,500 Motor expenses 1,500 Interest expense 4,000 Receivables 36,000 Allowances for receivables 2,000 Payables 28,000 Cash at bank 155,500 Bank loan 50,000 80,000 Capital Drawings 7,500 507,000 507,000 Additional information is provided for use in preparing the company's adjustments : Closing inventory is valued at $ 32,500 . 2. Equipment is depreciated by 25% on straight line basis . 3. Motor vehicles are depreciated 30% on reducing balance basis. 4. Accrued wages at the end of 2013 amount to $ 1,300. 5. On 1 ^ (st) April 2013 Adam paid $1,500 for insurance which was valid until March 2014. 6. Irrecoverable receivables of $800 need to be written off 7. Adam decides to increase allowance for receivables to \$2,500 . Required : 1. Make the end-of-period adjustments entries ( 10.8 Marks ) 2. Prepare Adam's income statement for the year ended December 31, 2013 10.8 Marks) 3. Prepare Adam's balance sheet as at December 31, 2013. (8.4 Marks)