Need help with part c
3 2 Margareta has operated her own graphic design business successfully for the last 10 years. On 1 January 2019 she converted her business to a private limited company. The following financial information has been provided for the year ended 31 December 2019. Impairment loss on trade receivables Depreciation charge on office equipment Depreciation charge on motor vehicles Fees received from digital design work Fees received for print and promotional materials Commission income Cost of print and promotional materials Motor vehicle expenses Administrative expenses Discount received from suppliers $ 3040 5250 4100 178000 61400 2666 36 480 16720 53680 4200 REQUIRED (a) Prepare an income statement for the company for the year ended 31 December 2019. [4] Additional information Margareta supplied the following details of changes that took place when she converted her business to a private limited company. 1 Margareta's capital account balance of $150 000 was converted into $1 ordinary shares. 2. Her brother, Giavin, became an ordinary shareholder on 1 June 2019 after purchasing 30000 ordinary shares at $1 each. 3 The premises owned by the business had been revalued from $100 000 to a current value of $175 000 at 31 December 2019. 4 Bonus shares were issued at the year end from retained earnings on the basis of 1 ordinary share for every 4 ordinary shares held at that date. 5 At the year end a dividend was paid to shareholders of $0.15 for every ordinary share held including any bonus shares issued to date. 3 2 Margareta has operated her own graphic design business successfully for the last 10 years. On 1 January 2019 she converted her business to a private limited company. The following financial information has been provided for the year ended 31 December 2019. Impairment loss on trade receivables Depreciation charge on office equipment Depreciation charge on motor vehicles Fees received from digital design work Fees received for print and promotional materials Commission income Cost of print and promotional materials Motor vehicle expenses Administrative expenses Discount received from suppliers $ 3040 5250 4100 178000 61400 2666 36 480 16720 53680 4200 REQUIRED (a) Prepare an income statement for the company for the year ended 31 December 2019. [4] Additional information Margareta supplied the following details of changes that took place when she converted her business to a private limited company. 1 Margareta's capital account balance of $150 000 was converted into $1 ordinary shares. 2. Her brother, Giavin, became an ordinary shareholder on 1 June 2019 after purchasing 30000 ordinary shares at $1 each. 3 The premises owned by the business had been revalued from $100 000 to a current value of $175 000 at 31 December 2019. 4 Bonus shares were issued at the year end from retained earnings on the basis of 1 ordinary share for every 4 ordinary shares held at that date. 5 At the year end a dividend was paid to shareholders of $0.15 for every ordinary share held including any bonus shares issued to date
