Question 1: Adam owns a small business selling home electronics. Below is the company's unadjusted trial balance dated December 31, 2020. Additional information is provided for use in preparing the compan 1,608,400 1. Closing inventory is valued at $39,000. 2. Equipment is depreciated by 25% on straig 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 1st April 2017 Adam paid $1,800 for insurance which was valid until 31st 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 31st,2020. 2. Prepare Adam's balance sheet as at December 31st,2020