EXERCISE 9.3 Ringo Limited was formed on 1 January 2013 with an authorised capital consisting of 150 000 ordinary shares. The following are the balances in the ledger of Ringo Limited at 1 January 2014, the beginning of its second financial year: Ordinary share capital Retained earnings SARS Shareholders for dividends Land, at cost Cash at bank A. The summarised transactions of the company for 2014 were: Cash receipts: Rent revenue Commission revenue PR DR CR R 140 000 19 000 24 000 15 000 170 000 28 000 R198 000 R198 000 Proceeds from sale of land (carrying amount of land sold was R20 000) Cash payments: South African Revenue Service R70 000 15 000 30 000 R115 000 (tax payable for 2013 year in terms of final assessment received in April 2014) 24 000 South African Revenue Service (provisional tax payments for 2014) Final ordinary dividends for 2013 Administrative expenses 11 700 15 000 75 000 R125 700 B. Adjusting entries at 31 December 2014 are required for: (i) The accountant's estimate that taxation payable for the 2014 year will be R4 600. (ii) The resolution passed by the directors to recommend at the company's annual general meeting that an ordinary dividend of R10 000 be paid for the 2014 financial year. REQUIRED: (a) Record the transactions for 2014 given in A. in general journal form. (b) Post the journal entries to the ledger accounts provided. () Prepare the company's adjusting and closing journal entries. (d) Post the adjusting and closing entries to the ledger accounts and close or balance the accounts. (e) Prepare the company's Statement of Profit or Loss, Statement of Financial Position and Statement of Changes in Equity for the year ended 31 December 2014.