The following items of the KO-K Club ended 31 December 2010: Receipts: RM Payments: RM Life membership fees 12,600 T-shirts purchases 5,250 Annual subscriptions 50,400 Wages expense 18,600 Sales of T-shirts 5,100 Equipment 21,500 Donation 1,500 General expenses 910 Rent expense 2,160 Balance c/d 21,180 69,600 69,600 Notes: i) Annual subscriptions paid in advance by members at 31 December 2010 amounted to RM1,870. ii) The club purchased 350 T-shirts printed with its own design. 50 of these T- shirts remained unsold at 31 December 2010. iii) Provide for depreciation of equipment RM2,400. iv) A life membership scheme was introduced on 1 February 2010, and its fee is to be apportioned over a ten-year period. Required: a) Prepare an income and expenditure account for the year ended 31 December 2010. b) Prepare a balance sheet as at 31 December 2010.