Del Arbre Ltd (hereafter referred to as "DA") is a property development company listed on the JSE. The company was founded by Mr Labuschagne and Mr Kaiser in 1974 and has since grown to be one of the most reputable property development companies in South Africa. The company has a 31 December financial year-end. Per the Memorandum of Incorporation, the company has an authorised share capital of 1 500 000 shares. At the beginning of the 2020 financial year, 470 000 shares were in issue. You have been given the following preliminary trial balance as at 31 December 2020: Trade Receivables Interest Expense Revenue from Construction Contracts Construction Equipment Long-term loan Current portion of long-term loan Retained Earnings (as at 1 January 2020) Cash Depreciation Salaries and Wages Inventory Accumulated Depreciation Share capital Dr (ZAR) 2 666 000 14 350 Cr (ZAR) 7 623 000 41 049 800 12 500 000 4 896 000 91 000 1 250 000 718 000 375 000 27 695 150 a. On 1 January 2018, DA signed a 5-year lease agreement for office space in Sandton. Per the agreement, DA is required to pay R43 000 per month (in arrears), with payment being due on the 6th day of the following month. 3. Insurance: a. DA has an active insurance policy over their construction equipment. The insurance premiums are normally R14 250 per month. On 1 September 2020, DA decided to pay the insurance premiums for the next 12 months in advance, as this entitled DA to a 5% discount on the above amount. 4. Bad debts: a. DA received a notification that one of their major debtors, Barry Renovations (Pty) Ltd, was in liquidation. This debtor makes up 75% of the debtors balance at yearend. Management of DA have after careful deliberation concluded that only 20% of the amount owed is recoverable. b. Management of DA have correctly estimated that the allowance for expected credit losses for 2020 should be 5% of all other debtors. 5. Debentures: a. DA issued 150 000 10% debentures of R10 each on 1 January 2020 at a discount of 5%. These debentures are redeemable at par value 5 years after issue. The effective interest rate is 11,365%. 6. Dividend: a. On 28 December 2020 the Directors of DA declared a dividend of R1,20 per share. b. This dividend is subject to withholding tax of 20%. c. As at 31 December 2020, the dividend had not yet been paid. 142 000 2 350 000 7. Current tax: a. The current tax expense equals 28% of the profit before tax. Additional information: The following additional information has not yet been taken joto account in the above trial balance: 1. Share issue: a. During the first quarter of 2020 financial year, the directors decided to issue 350 000 shares, at an amount of R4,50 per share. The share-issue costs were R52 500. 2. Office Rental: b. The company made a provisional tax payment of R51 000 during the financial year. You are required to: Marks 3 Prepare the statement of changes in equity for Del Arbre, for the financial period ended 31 December 2020. (8) Please note . Ignore VAT. For all questions, comparative figures are not required