Question 2: (20 marks) Hussain owns a small business selling coffee makers to other businesses. On 31" December 2019 he extracted the following trial balance. Credits 690,200 4.200 15:40 3.500 11.200 Account Name Debits Sales Revenue Sales returns Opening inventory 103,600 Purchases 450.800 Purchase returns Freehold property 280,000 Equipment at cost 35,000 Accumulated depreciation on equipment Motor vehicle 56,000 Accumulated depreciation on motor vehicle Salaries and Wages 13.300 Insurance 1.680 Motor expenses 4.760 Advertising expenses 1,400 Loan interest 6,300 Receivables 91,000 Allowance for receivables Payables Cash at bank 15.400 Bank loan Capital Total 1,063,440 4.200 79,800 63,000 210,000 1,063,440 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 31" December 2019. b. Prepare Hussain's balance sheet as at December 2019