Frank Jon Ltd has just finished its first year of trading to 31 December 2016. Corporation tax throughout was 40% and income tax 20%. You are given the following information:
(i) Net trading profit, after adjustment for (ii) but before other adjustments, was £390,000.
(ii) Depreciation of £70,000 was charged. Capital allowances were £110,000.
(iii) An interim dividend of 4% on 0.8 million £1 ordinary shares was paid on 1 July 2016.
(iv) Loan-note interest of £14,000 (net) was paid on 31 December 2016.
(v) Income tax deducted from loan-note interest was paid on 31 January 2017.
(vi) A final dividend of 6% was proposed for the year.
(vii) Corporation tax for the year was estimated to be £145,000.
You are required to:
(a) Draw up the double entry accounts recording the above (except bank);
(b) Show the relevant extracts from the statement of profit or loss and the statement of financial position.