Dingo Limited was incorporated on 1 January 2013 with an authorised share capital consisting of 200 000 ordinary shares and 50 000 7% preference shares. On 31 December 2019, 50 000 ordinary shares and 50 000 7% preference shares were issued. The trial balance of Dingo Limited as at 31 December 2019 reflects the following balances: Debit Credit R R 75 000 Ordinary share capital 50 000 Preference share capital 54 000 Retained earnings on 1 January 2019 16 000 Replacement reserve on 1 January 2019 23 000 Bank load Machinery 250 000 Accumulated depreciation on machinery (01/01/2019) 50 000 Vehicles 100 000 Accumulated depreciation on vehicles (01/01/2019) 25 000 Investment in Xeron Ltd 25 000 Investment in Yebo (Pty) Ltd 4 000 Inventories on 1 January 2019 12 000 Receivables control 14 000 Bank 140 500 Petty cash 4 000 Payables control 14 200 Dividends paid - Ordinary shares 3 000 Dividends paid - preference shares 3 500 Sales 465 000 Purchases 65 000 Profit on realisation of investment 3 600 Directors' remuneration 12 500 Auditing fees 12 500 Cleaning 2 400 Advertising Printing 200 Bad debts 150 Salaries and wages 215 Interest expense 55 600 Stationery 462 Water and electricity 450 Rent expense -buildings 5 400 Telephone 61 500 3423 Additional information: 775 800 775 8.00 Additional information: 1. The investment in Xeron Ltd, a company listed on the JSE Securities Exchange consisted of 10 000 ordinary shares. The market value of the shares on 31 December 2019 was R40 000 2. The investment in Yebo (Pty) Ltd consisted of 2 500 ordinary shares. The directors revalued the investment on 30 October 2019 at R6 000. It is custom that the directors revalue the unlisted investments every year. Page 5 of 7 FSAO - ACCOBB1/REKOB01 - Accounting B 3. Non-current assets are written off on a straight-line method at the following rates: : Machinery: 20% per annum Vehicles: 25% per annum The 20% bank loan was entered into on 1 November 2019. The original value of the bank loan was R25 000. The loan is repayable in equal monthly instalments of R1 000 4. each. 5. Inventories consist of merchandise. The closing inventories amount to R8 000. The directors have decided that R12 000 must be transferred to the replacement 6. reserve. 7. Director's remuneration consisted of R10 000 for attendance of meetings and the balance refers to the salary of the managing director. The total comprehensive income for the year was R133 845 while the retained earnings were R169 345 on 31 December 2019 and the taxation for the year amounts to R52 955. B DCnen REQUIRED: a) Prepare the statement of changes in equity for the reporting period ended 31 December 2019 for Dingo Limited. (31) b) Prepare ONLY the following notes to the statement of financial position: Property, Plant and Equipment (21) Financial assets (10) Share capital (11) Note: Dingo Limited is not registered for VAT purposes. Dingo Limited was incorporated on 1 January 2013 with an authorised share capital consisting of 200 000 ordinary shares and 50 000 7% preference shares. On 31 December 2019, 50 000 ordinary shares and 50 000 7% preference shares were issued. The trial balance of Dingo Limited as at 31 December 2019 reflects the following balances: Debit Credit R R 75 000 Ordinary share capital 50 000 Preference share capital 54 000 Retained earnings on 1 January 2019 16 000 Replacement reserve on 1 January 2019 23 000 Bank load Machinery 250 000 Accumulated depreciation on machinery (01/01/2019) 50 000 Vehicles 100 000 Accumulated depreciation on vehicles (01/01/2019) 25 000 Investment in Xeron Ltd 25 000 Investment in Yebo (Pty) Ltd 4 000 Inventories on 1 January 2019 12 000 Receivables control 14 000 Bank 140 500 Petty cash 4 000 Payables control 14 200 Dividends paid - Ordinary shares 3 000 Dividends paid - preference shares 3 500 Sales 465 000 Purchases 65 000 Profit on realisation of investment 3 600 Directors' remuneration 12 500 Auditing fees 12 500 Cleaning 2 400 Advertising Printing 200 Bad debts 150 Salaries and wages 215 Interest expense 55 600 Stationery 462 Water and electricity 450 Rent expense -buildings 5 400 Telephone 61 500 3423 Additional information: 775 800 775 8.00 Additional information: 1. The investment in Xeron Ltd, a company listed on the JSE Securities Exchange consisted of 10 000 ordinary shares. The market value of the shares on 31 December 2019 was R40 000 2. The investment in Yebo (Pty) Ltd consisted of 2 500 ordinary shares. The directors revalued the investment on 30 October 2019 at R6 000. It is custom that the directors revalue the unlisted investments every year. Page 5 of 7 FSAO - ACCOBB1/REKOB01 - Accounting B 3. Non-current assets are written off on a straight-line method at the following rates: : Machinery: 20% per annum Vehicles: 25% per annum The 20% bank loan was entered into on 1 November 2019. The original value of the bank loan was R25 000. The loan is repayable in equal monthly instalments of R1 000 4. each. 5. Inventories consist of merchandise. The closing inventories amount to R8 000. The directors have decided that R12 000 must be transferred to the replacement 6. reserve. 7. Director's remuneration consisted of R10 000 for attendance of meetings and the balance refers to the salary of the managing director. The total comprehensive income for the year was R133 845 while the retained earnings were R169 345 on 31 December 2019 and the taxation for the year amounts to R52 955. B DCnen REQUIRED: a) Prepare the statement of changes in equity for the reporting period ended 31 December 2019 for Dingo Limited. (31) b) Prepare ONLY the following notes to the statement of financial position: Property, Plant and Equipment (21) Financial assets (10) Share capital (11) Note: Dingo Limited is not registered for VAT purposes