Alpha Inc. has a trading profit for the year ended 31 December 2023, before dealing with the following items, of $45,000. You are to complete the profit and loss account and appropriation account.
•The standard rate of income tax is taken as being 28%.
•Alpha Inc. had $30,000 of 7% debentures. It sent them cheques for debenture interest for the year less income tax, on 31 December 2023.
•Alpha Inc. had bought $20,000 of 9% debentures in another company. It received a year's interest, less income tax, on 30 December 2023.
•No cheque has been paid to the Inland Revenue for income tax.
•Alpha Inc. had bought 10,000 ordinary shares of $1 each in Beta Ltd. Beta Ltd paid a dividend to Alpha Inc. of 18% on 30 November 2023. Beta Ltd is a 'related company'.
•Alpha Inc. had a liability for corporation tax, based on profits for 2023, of $22,000.
•Alpha Inc. proposed a dividend of 20% on its 60,000 ordinary shares of $1 each, out of the profits for 2023.
•Transfer $4,000 to general reserve.
•Unappropriated profits brought forward from last year amounted to $8,500.
Requirement: Complete the profit and loss account and appropriation account for Alpha Inc. and prepare the balance sheet.