A lorry was purchased for £45,000 on 1 January 2010 and was expected to last for five years after which it was estimated that it could be sold for £8,000 The company uses the straight-line method of depreciation.

Prepare an income statement for Llareggyb Ltd for the year ended 31 December 2010.

Llareggyb Ltd started business on 1 January 2010 and its year ended 31 December 2010. Llareggyb entered into the following transactions during the year.

Received funds for share capital of £25,000 Paid suppliers of materials £44,000 Purchased 11,000 units of a product at £8 per unit, which were sold to customers at £40 per unit Paid heating and lighting costs for cash £16,000 Further heating and lighting costs of £2,400 were incurred within the year, but were still unpaid at 31 December 2010 Mr. D Thomas loaned the company £80,000 on 1 January 2010 at 8% interest per annum Loan interest was paid to Mr Thomas for January to June 2010 8,000 product units were sold to customers during 2010 Customers paid £280,000 to Llareggyb for sales of its products Rent on the premises £60,000 was paid for 18 months from 1 January 2010, and local business property taxes of £9,000 were also paid for the same period Salaries and wages were paid for January to November 2010 amounting to £132,000 but the December payroll cost of £15,000 had not yet been paid as of 31 December 2010 A lorry was purchased for £45,000 on 1 January 2010 and was expected to last for five years after which it was estimated that it could be sold for £8,000 The company uses the straight-line method of depreciation.
Prepare an income statement for Llareggyb Ltd for the year ended 31 December 2010.