From the following trial balance of Morse Ltd, prepare an income statement for the year ended 31 December 2008 and a balance sheet at that date (not in a form suitable for publication) .

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Dr 3D Directors' remuneration Wages of salesforce 59,200 65,230 Office salaries 34,900 Advertising and website charges 15,300 Finance costs 2,502 Sales delivery costs 632 Office expenses 33,897 Revenue 462,600 Opening inventory at 1 January 2008 14,900 Purchases 140,800 Share capital (50p nominal shares) Share premium account Dividends paid 25,000 15,000 5,000 Bad debts written off 750 Retained earnings as at 1 January 2008 17,600 Delivery vehicles, cost as at 1 January 2008 143,600 Depreciation of delivery vehicles at 1 January 2008 27,800 Trade receivables 64,100 Trade payables 32,711 Debenture (repayable in 2012) 10,000 Provision for doubtful debts 1,600 Cash and cash equivalents 11,500 592,311 592,311 -tes: