2 Beka Plc is a limited liability company providing engineering services. The company has been in operation for a number of years and has produced the following Trial Balance for the year ended December 31, 2020: Page 3 of Debit Credit ($) (5) Fee Income received 270,000.00 Commission received 280,000.00 Interest Income 120,000.00 Wages and salaries 152,500.00 Stationery and postage 72,250.00 Utility charges 124,240.00 Repairs and maintenance 53,900.00 Professional fees 12.800.00 Rental income 220,000.00 Insurance 28,000.00 Interest expense 24,000.00 General expenses 42,000.00 Directors fees 60,000.00 Receivables 220,000.00 Payables 76,500.00 6% Loan (2028) 300,000.00 5% Loan-payable in 6 months 100,000.00 Cash at bank 162,800.00 Cash in hand 32,210.00 Share Capital ($1.00) 300,000.00 Staff Welfare 44,200.00 Office equipment 467,000.00 Provision for depreciation 93,400.00 Motor vehicles 480,000.00 Provision for depreciation 96,000.00 Retained profits/earnings 120,000.00 1.975,900.00 1.975.900.00 Monday Dec 30, 3021 Retained profits/earnings 120,000.00 1.975.900.00 1.975.900.00 Notes: (1) (2) (3) Depreciation is to be charged at the following annual rates: Equipment 20% on cost Motor Vehicle 25% on cost Insurance is prepaid by $8,000. Utility bills received after close of the trial balance due and payable on January 1, 2021 amounting to $7,000. (4) Interest on the 5% loan although due was not paid. (5) The corporation tax charge on profits is estimated to be $12.000. Required: 1. 2. (a) Prepare the Statement of Profit or Loss for the year ended December 31, 2020 and a statement of financial position as at December 31, 2020. (b) The shareholders of Beka Plc asked the directors to declare a dividend of 15 cents per share. Calculate the total dividend that would be payable based on the shareholders' request and advise the directors if there is sufficient profit to pay the dividend. (Do not adjust the profits or include in the statement of financial position). The directors received a letter from a concemed shareholder, Loma Jones, who wanted to know, having reviewed the financial statements, if she is responsible for the payment of the corporation taxes shown in the profit or loss statement and, if so, what amount. QUESTION 2 Beka Plc is a limited liability company providing engineering services. The company has been in operation for a number of years and has produced the following Trial Balance for the year ended December 31, 2020 P Debit (5) Credit (5) Fee Income received 270,000.00 Commission received 280,000.00 Interest Income 120,000.00 Wages and salaries 152,500.00 Stationery and postage 72,250.00 Utility charges 124,240.00 Repairs and maintenance 53,900.00 Professional fees 12.800.00 Rental income 220,000.00 Insurance 28,000.00 Interest expense 24,000.00 General expenses 42,000.00 Directors fees 60,000.00 Receivables 220,000.00 Payables 76,500.00 6% Loan (2028) 300,000.00 5% Loan-payable in 6 months 100,000.00 Cash at bank 162,800.00 Cash in hand 32,210.00 Share Capital ($1.00) 300,000.00 Staff Welfare 44,200.00 Office equipment 467,000.00 Provision for depreciation 93,400.00 Motor vehicles 480,000.00 Provision for depreciation 96,000.00 Retained profits earnings 120,000.00 1,975,900.00 1.975.900.00 A Staff Welfare 44,200.00 Office equipment 467,000.00 Provision for depreciation 93,400.00 Motor vehicles 480,000.00 Provision for depreciation 96,000.00 Retained profits earnings 120,000.00 1,975,900.00 1,975,900.00 P Notes: (1) (2) (3) Depreciation is to be charged at the following annual rates: Equipment 20% on cost Motor Vehicle 25% on cost Insurance is prepaid by $8,000. Utility bills received after close of the trial balance due and payable on January 1, 2021 amounting to $7,000 (4) Interest on the 5% loan although due was not paid. (5) The corporation tax charge on profits is estimated to be $12,000. Required: 1. 2. (a) Prepare the Statement of Profit or Loss for the year ended December 31, 2020 and a statement of financial position as at December 31, 2020. (b) The shareholders of Beka Plc asked the directors to declare a dividend of 15 cents per share. Calculate the total dividend that would be payable based on the shareholders' request and advise the directors if there is sufficient profit to pay the dividend. (Do not adjust the profits or include in the statement of financial position). The directors received a letter from a concerned shareholder, Loma Jones, who wanted to know, having reviewed the financial statements, if she is responsible for the payment of the corporation taxes shown in the profit or loss statement and, if so, what amount