The following trial balance was taken from the books of XYZ Corporation on December 31, 2020.

Account Debit Credit

Cash $ 12,000

Accounts Receivable 40,000

Note Receivable 7,000

Allowance for Doubtful Accounts $ 1,800

Inventory 44,000

Prepaid Insurance 4,800

Equipment 105,000

Accumulated DepreciationEquip. 15,000

Accounts Payable 10,800

Share CopitalOrdinary 44,000

Retained Earnings 55,000

Sales Revenue 260,000

Cost of Goods Sold 111,000

Salaries and Wages Expense 50,000

Rent Expense 12,800

Totals $386,600 $386,600 0

+

At year end, the following items have not yet been recorded.

a. Insurance expired during the year, $2,000.

b. Estimated bad debts, 1% of gross sales.

c. Depreciation on equipment, 10% per year.

d. Interest at 5% is receivable on the note for one full year.

*e. Rent paid in advance at December 31, $5,400 (originally charged to expense).

f. Accrued salaries and wages at December 31, $5,800.

C) Prepare income statement and balance sheet.