Additional Information at 30 April 2006:- i- Office expenses prepaid $8,000 ii- Selling and distribution expenses accrued $23,000 iii- Provision for irrecoverable debts to be maintained at 2% of receivables. iv- Depreciation to be provided as follows: Motor vehicles 50% per annum reducing balance. Fixtures and fittings 20% per annum on cost. V- Dividend proposed; $0.10 per share for ordinary shareholders and the balance due to preference shareholders. vi- Peter sold goods on "sale or return" basis to a customer on credit. The customer has not yet indicated acceptance of the goods. The goods costs $15,000 and the customer has been invoiced for $18,000. NB:- THIS WAS OMITTED WHEN CALCULATING GROSS PROFIT. vii- Taxation is to be provided for in the sum of $20,000. viii- Peter made a bonus issue of 20 new shares for every 300 shares already held. He followed this with a right issue of 2 new shares for every 10 shares already held. The right shares were issued at $1.25 per share. ix- 50% of the Preference shares were redeemed at par value. X-30% of retained earnings should be transferred to General Reserve. Required:- (A) Complete Peter Jordan Plc's Income Statement (Profit and loss section) for the year ended 30 April 2006 in as much details as possible. 10 Marks om ACCOUNTING-GRADE 12 After completion of the TRADING SECTION of the Income Statement, the following balances were extracted from the books of Peter Jordan Plc. on 30 April 2006. Ordinary shares of $1 each 7% Preference shares of $1 each fully paid Premises Motor vehicles Fixtures and fittings Provision for depreciation on Motor Vehicle Provision for depreciation on Fixtures and Fittings Gross Profit Inventory office expenses Selling and distribution expenses 6% debentures - 2011(issued in 2001) Debenture interest paid Profit on sale of motorvehicle Retained Earnings -1 May 2005 Receivables Payables Bank Cash Share Premium Interim dividend paid - Ordinary Shares Preference shares Provision for irrecoverable debts Amount($) 1,500,000 200,000 2,300,000 500,000 170,000 375,000 102,000 1,620,000 204,000 460,000 486,000 100,000 3,000 2,000 143,600 132,000 266,000 26,800cr 400 150,000 75,000 8,000 3,000