please help me solve it step by step

Question 1: (40 marks) Adam owns a small business selling home electronics. Below is the company's unadjusted trial balance dated December 31, 2020. Trial Balance Account Name Debit S Credit S Sales 384,000 Sales Return Opening inventory Purchases Purchases return 19,200 Non-Current assets at cost: Freehold property Equipment Motor Vehicles Accumulated depreciation on: Equipment 7,200 6.000 Insurance Advertising expenses Motor expenses Loan interest Receivables Allowances for receivables 2,400 33,600 Payables Cash at bank 60,000 Bank loan Capital 96,000 608,400 Additional information is provided for use in preparing the company's adjustments: 1. Closing inventory is valued at $39,000. 2. Equipment is depreciated by 25% on straight line basis. 3. Motor vehicles are depreciated by 30% on reducing balance basis. 4. Accrued wages at the end of 2017 amount to $1,560. 5. On 1 April 2017 Adam paid $1,800 for insurance which was valid until 31 March 2018. 6. Irrecoverable receivables of $960 need to be write off. 7. Adam decides to increase allowances for receivables to $3,000. 8. Adam has taken goods worth $9,000 for his own use. Required: 1. Prepare Adam's income statement for the year ended December 31, 2020. 2. Prepare Adam's balance sheet as at December 31, 2020. [20+20-40 marks] 8291-Final-VB Page 12 SU EGYPT 10,200 57,600 151,200 90,000 28.800 16,800 8,400 3,600 5,400 1.800 4,800 43,200 186,600 2021-2022/Fall Semester