r.r1/ rtil : Esiogl Q 14 Although Husham dose not keep a full set of accounting records, His business transactions durins The Financial year ended December 31, 20o1, are summarized as follows: 1. All cash transaction was with the bank. wi's, \& =1 ue upurg 2. Total sales 184000 , sales returns. 2500 and accounts reccivable balance at DeC.31, zool was 17680; All transactionswith 3. The balance of accounts pay able at Dec.31,2001, was 12120 , discounts received from suppliers 1240. All purchases was on account, and inventory at Dec. 31,2001 war 25000% 4. Expenses payments: Rent Soon, Salaries 15000, Heat and light 3500 Electricity 1950 5. prepaid Rentat Dec. 31,2001 was 1200 and accrual clectrict, was 270 6.loan of 12000 was received at Aug. 5.2001 7. Addition to furniture of 3000 on cash. 8. Cash withdrawals by Husham of 14000 . 2. Expected doubtful accounts 5% of ending accounts receivable balance. 10. Depreciation on furniture at a rate of 10% of ending and balance and on buildings was 4% 11. Gross profit percentage was 40% of net sales: Required: from the above data prepare: 1. Income statement for year ended Dec. 3izool 2. Balance sheet as at Dec. 31,2001