Taurus Limited list of balances year ended December 31,2010 $ 15% Preference Share Capital 100,000 Ordinary Share Capital 100,000 General Reserves 16,000 20% Debentures 100,000 Retained Profits January 1, 2010 140,202 Sales 1,000,000 Cost of Sales 686,460 Debenture Interest paid for 2010 7,500 Salaries 136,250 Insurance 13,265 Utilities 21,853 Office Supplies Expense 222 Rental Income 3,900 Depreciation 3,000 Telephone Expenses 2,000 Furniture 70,000 Allowance for depreciation on Furniture 40,000 Trade Debtors 136,270 Cash & Bank 106,480 Closing Stock 277,002 Trade Creditors 17,200 Preference Dividends Paid 15,000 Ordinary Dividends paid 20,000 Rent expense 22,000 Additional information 1 Rent expense owing as at December 31, 2010 $2,000 2 Rental income for 2011 received in 2010 amounted to $300 3 Prepaid insurance during 2010 amounted to $2,400 4 4 Provide for Corporation tax of $28,602 for 2010 5 Transfer $2,000 to general reserve. 6 Weighted average number of ordinary shares in issue during 2010 amounted to 50,000 Required: (a) Prepare the Income Statement for the year ended December 31,2010 (19 marks) (b) Prepare the Statement of Changes in Equity for the year ended December 31, 2010 (8 marks) Prepare the Balance Sheet as at December 31, 2010 (9 marks) (d) Define the following terms (i) Bonus Issue (2 marks) (ii) Earnings per Share