< Assignment 1 and... Recomice carming 1 January LUGLY General reserve (1 January 2022) 8% Mortgage loan from Investec Trade creditors Land and buildings (at cost) Office equipment (at cost) Delivery vehicles (at cost) Accumulated depreciation on office equipment Accumulated depreciation on delivery vehicles Trade debtors Allowance for credit losses (1 January 2022) Inventory Cash and cash equivalents 5 600 000 560 000 2 400 000 1955 000 1 840 000 2 200 000 Required: Inland Revenue: Normal tax (provisional tax payments) Sales Cost of sales Distribution expenses Administrative expenses Other operating expenses Interest on mortgage loan paid Additional information and adjustments: 1. The company's authorised share capital consists of: 6 000 000 ordinary shares with no par value 10 000 000 12% preference shares at N$ 1 par value. 2. On 1 December 2022, the directors of the company decided and resolved to use their general authorization to affect the following: To issue 600 000 12% preference shares to the public at par value. To convert the 4 000 000 no par ordinary shares into par value shares of N$ 1 each. These transactions have not yet been recorded. 3. Annual depreciation has not yet been provided for. The company's accounting policy states that depreciation is written off as follows: 402 000 2 7 600 000 606 000 648 000 205 400 240 000 & UTU UUU 837 400 3 000 000 20 000 Office equipment 25% diminishing balance method Delivery vehicles 25% straight-line method The company does not provide for depreciation on land and buildings. Office equipment exclusively Page 13 of 23 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES 245 000 960 000 11 400 000 4. The company purchased land and buildings in 2020 for N$ 5 600 000 by taking out a mortgage loan from Investec. The company's accounting policy states that land and buildings should be revalued. Mr Kangumu, a sworn appraiser, revalued the land and buildings for the first time on 31 December 2022 at a fair value of N$7 000 000. No entriespertaining to the revaluation have been recorded. used for administrative purposes and delivery vehicles used in the distribution of vehicle parts. The company did not purchase or dispose of any office or delivery vehicles duringthe year. 104 000 5. Interest on the mortgage loan of N$240 000 was calculated correctly and has already beenpaid. 6. The company's credit controller, Mr Joel Kakena, performed an analysis of the company'sdebtors on 31 December 2022. The analysis indicated that N$204 000 of the outstandingdebtors are expected not to be recoverable. The allowance for credit losses should be adjusted accordingly. Credit losses are considered part of the operating expenses. 7. The shareholders approved a final ordinary dividend of 50c per share On 31 December 2022. 8. It was decided on 31 December 2022 to transfer a further N$22 600 to the general reserve.This transaction has not yet been recorded. 9. The normal income tax rate for companies is 32%. a) Statement of profit or loss and other comprehensive income for the year ended 31 December 2022 according to the function of expenses. (20 marks) b) Statement of financial position as at 31 December 2022. (10 marks) 13/2 Prepare the following in accordance with the requirements of International Financial ReportingStandards (IFRS) and the Companies Act 28 of 2004: