Required: Study the trial balance as shown in the next pages and prepare a fully classified income statement. (10 Marks) 1 Trial Balance of Highflyers Company Limited As At 31st December 2021 Debit Credit 150,000 3,000 15000 100.000 20,000 200 2,000 1,000 100 1,500 5,000 1,500 Sales Sales Returns Salaries for sales staff Opening Stock Purchases Purchases returns Cartage inwards Commission received discount received stationery advertising Interest due vehicle expenses-sales dept salaries cleaning office expenses directors fees audit fees insurance electricity repair and maintenance - office discount allowed interest on loan Gain on sale of furniture Damage caused by flood Authorized Capital (1000,000 @ $1) Unissued Capital (500,000 @ $1) Profit and Loss Appropriation Account opening balance General Reserve Cash at bank Debtors Accounts Payable Final dividend payable Electricity expense due bad debts Furniture Provision for depreciation-furniture Machinery Provision for depreciation-machinery 5,000 50,000 5,000 3,500 1,700 1,500 500 3,500 1,500 150 3,500 500 1,500 1,000,000 500,000 73,550 30,000 30,000 30,000 20,000 15,000 3,500 1,500 25,000 850 135,000 13,500 Buildings Land Investment in Fixed Deposit Goodwill Mortgage 150,000 200,000 50,000 3,500 39,150 1,348,850 1,348,850 Additional information: Closing stock $50,000