2 due week & wed Group 3 The following trial balance was extracted from the books of an imaginary company called Nyamachoma Ltd. as at 31 December 2018: Dr. Cr. Sh. Sh. 8% preference share capital 35,000 Ordinary share capital 125,000 10% debentures (repayable 2024) 20,000 Share premium 21,000 Profit and loss account b/forward at 1.1.2018 13,874 Equipment at cost 122,500 Motor vehicles at cost 99,750 Provision for depreciation: Equipment 29,400 Provision for depreciation: Motor vehicles 36,225 Stock 1 January 2018 136,132 Sales 418,250 Purchases 232,225 Sales returns 4,025 General expenses 1,240 Salaries and wages 46,260 Directors' remuneration 18,750 Rent, rate and insurance 18,095 Motor expenses 4,361 Debenture interest 1,000 Bank 12,751 Cash 630 Debtors 94,115 Creditors 93,035 791,834 791,834 The following adjustments are needed: Stock at 31 December 2018 was Sh.122,000 Depreciate equipment at 10% on cost and motor vehicles at 20% on cost Transfer to general reserve Sh.5,000 ii) iii) Accrued rent Sh.2000 Accrued debenture interest Sh.1,000 iv) v) vi) vii) Required: It is proposed to pay the 8% preference dividend and 10% dividend on the ordinary shares Authorized share capital is Sh.35,000 in preference shares and Sh.200,000 in Sh.10 ordinary shares Prepare an income statement for the above