Lefrejun Ltd was formed nine months ago when Lee, Fred and June had finished their Bachelor of Construction Management programme at Deakin University. They saw an opportunity to sell wearable sensors to construction workers at a discounted price. Details of the first nine months of trading were as follows:

Investment Shares in Lefrejun Ltd were set up at a price of $0.25 each. Lee, the major shareholder bought 40,000 shares while Fred and June each bought $5,000 worth. In addition, the local bank offered them an interest free loan of $1,000 to be repaid in five years' time.

Sales

During the period they sold 800 wearable sensors at a cash price of $90 each and had just despatched a further 200 sensors to Anglesea University at a price of $105 each. For this inflated price, Anglesea University was given three months to pay.

Cost of Sales

The wearable sensor cost $40 to purchase. At the end of the period, Lefrejun Ltd had 30 sensors in stock but had still to pay their supplier for the last batch of 20 sensors.

Selling/Distribution Expenses

A delivery van was purchased and paid for in the first month at a cost of $9,000. This is expected to last for three years but no residual value is anticipated.

Warehouse rental was $30,000 per annum, payable in advance.

Postage and stationery expenses, all paid, were $6,000.

Petrol expenses paid were $3,500.

Administration Expenses

Rates of $2,700 had been paid but one bill, for $900, was still outstanding.

Taxation

The Australian Tax Office had advised Lefrejun Ltd to provide for corporation tax of $5,000 for the trading period.

Dividends

Lefrejun Ltd had paid an interim dividend of $0.35 per share during the trading period but had decided not to propose a final dividend

Prepare the Income statement for the period.