V 36.11A The following information concerns Hurmey plc in relation to its year ended 31 July 2020: Trial balance as at 31 July 2020: Dr Cr Inventory as at 1 August 2019 53,010 Wages & salaries 113,856 Accounts payable 85,810 Returns outwards 2,928 Rent 19,757 Utilities 20,479 Purchases 523,735 Accounts receivable 105,600 Sales 1,138,555 Machinery: at cost 465,840 Vans: at cost 278,580 Machinery accumulated depreciation at 1 August 2019 105,120 Vans: accumulated depreciation at 1 August 2019 63,900 Dividends paid 51,440 Cash at bank 2,435 7% loan notes 2025-2027 175,000 Loan note interest paid 6,125 General reserve 34,100 Bad debt expense 25, 174 Share premium 77,000 Trial balance as at 31 July 2020 (continued): Dr Allowance for doubtful debts at 1 August 2019 4,237 Premises: at cost 658,600 Premises: accumulated depreciation at 1 August 2019 171,236 Ordinary shares of 5Op each 67,000 4% preference shares of 1 each 54,000 Commissions received 7,958 Directors' remuneration 91,080 Retained profits at 1 August 2019 428,867 2,415,711 2,415,711 Additional information: 6) The inventory was counted at 31 July 2020 and was valued at a cost of 53,661. (in Depreciation needs to be charged at the following rates per year: Premises: (straight-line) 2% Machinery: (straight-line) 20% Vans: (reducing balance) 30% Cin) The amount shown for rent on the trial balance includes a payment of 8,100 which represents twelve months' rent to 30 November 2020. (i Utilities charges incurred for which no invoices have yet been received amount to a total of 6,757. The audit fee has been agreed at 18,000 and this needs to be provided for. (VD) The allowance for doubtful debts is to be set at 5% of accounts receivable. (vin) The interest on the loan notes is paid in two instalments each year, and the second instalment needs to be accrued. (viiiThe corporation tax charge on this year's profit is estimated to be 33,000. (1x) The directors want to transfer 8,000 to general reserve. Required: An income statement for the year ended 31 July 2020 and a balance sheet as at that date, both in an internal use format (not for publication)