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Hussain owns a small business selling coffee makers to other businesses

Accounting

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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.

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 Hussain’s income statement for the year ending 31^st December 2019.
2. Prepare Hussain’s balance sheet as at December 2019.