Joytan Ltd has a trading profit, before dealing with any of the undermentioned items, for the year ended 31 December 2004 of £500,000. Prepare the income statement for the year.

(a) The standard rate of income tax is 25%.

(b) Joytan Ltd has bought £100,000 of 8% loan notes in another company. Joytan Ltd receives its interest, less income tax, for the year on 6 November 2004.

(c) Joytan has issued £300,000 of 10% loan notes, and pays interest, less income tax for the year on 22 December 2004.

(d) No cheque has been paid to Revenue and Customs for income tax.

(e) Joytan Ltd has a liability for corporation tax, based on the year’s profits for 2004, of £210,000.

(f) Joytan Ltd owns 90,000 ordinary shares of £1 each in Plax Ltd, and receives a cheque for the dividend of 15% in October 2004. Plax Ltd is neither a subsidiary company nor a related company of Joytan Ltd.

(g) Joytan Ltd proposed a dividend of 9% on its 500,000 ordinary shares of £1 each, payable out of the profits for 2004.

(h) Transfer £50,000 to general reserve.

(i) Unappropriated profits brought forward from last year amounted to £122,000.