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Hussain owns a small business selling coffee makers to other businesses. On 31^st December 2019 he extracted the following trial balance.

Account Name	Debit $	Credit $
Sales Revenue		690,200
Sales returns	4,200
Opening inventory	103,600
Purchases	450,800
Purchase returns		1540
Freehold property	280,000
Equipment at cost	35,000
Accumulated depreciation on equipment		3,500
Motor vehicle	56,000
Accumulated depreciation on motor vehicle		11,200
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		4,200
Payables		79,800
Cash at bank	15,400
Bank loan		63,000
Capital		210,000
Total	1,063,440	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:

1. Prepare Hussains income statement for the year ending 31^st December 2019.
2. Prepare Hussains balance sheet as at December 2019.

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