Question 4 The following trial balance has been extracted from the ledger of Mr. Cole, a sole trader Trial balance as at 31 December, 2020 Particulars Debit Credit Sales 138.000 Purchases 82.350 Travel expenses 5.200 Drawings 7,800 Rent rates & insurance 6,600 Postage and stationery 3,000 Advertisement 1.330 Salaries and wages 26,420 Bad debt 8,700 Investment Income 15,890 Debtors 12,120 31 Page Creditors 130 Cash in hand 1.700 Cash at bank 1.000 Inventory as at 1 January, 2020 11.800 Equipment at cost 58.000 Loan 19.000 Capital 53,000 226,020 226,620 Inventory at the close of business has been valued at $13.500 Required; Prepare an income statement for the year ending 31 December 2020 and a balance sheet as at that date