The following list of balances was extracted from the records of Wonderland Ltd for the year ended 28 February 20.19:

	Rand
	(cr) / dr
Ordinary share capital	(1 400 000)
Proceeds of 450 000 new no par value shares issued	?
Share issue expenses incurred on the above shares issued	4 000
Preliminary expenses	3 000
Land at cost	100 000
Buildings at cost	900 000
Delivery motorcycle at cost	80 000
Machinery and equipment at cost	1 600 000
Long-term loan from Losers (Pty) Ltd	(100 000)
Retained earnings – 1 March 20.18	(3 593 800)
Inventories – raw materials	8 000
Inventories – finished goods	92 000
Accumulated depreciation – 28 February 20.19 Machinery and equipment Buildings Delivery motorcycle	(800 000) ? ?
Provisional tax payments	16 200

Additional information:

1. Share capital

Wonderland Ltd was incorporated with an authorised share capital of 1 800 000 ordinary shares at no par value.

On 2 January 20.15 Wonderland Ltd issued 700 000 ordinary shares of no par value for R1 400 000.

On 1 March 20.18, another 500 000 shares were offered to the public at R2,50 each per share. The issue was underwritten by Help Ltd for a commission of 2%. On 30 June 20.18 applications for 450 000 ordinary shares were received and allotted. Preliminary expenses of R3 000 and share issue expenses of R4 000 were paid. It is the policy of the company to set-off share issue expenses against the ordinary share capital account.

On 1 February 20.19 the directors of Wonderland Ltd decided to make a capitalisation issue to ordinary shareholders in the ratio of 1 share for every 10 ordinary shares held at a market price of R2,40 per share.

2. 
   
3. Land and buildings

The existing land (owner occupied and situated at erf 10, Rietbron) was purchased on 1 March 20.15 for R100 000 (VAT excluded). Buildings at a cost of R900 000 (VAT excluded) were completed on 1 August 20.16 and available for use on 1 September 20.16. The building had at that date an expected useful life of 25 years and a residual value of R50 000 (VAT excluded). No depreciation is recognised on land.

Due to the increase in property values over the past year, the directors of Wonderland Ltd decided in to apply the revaluation model to land and buildings. The net replacement value on 1 March 20.18 was R1 615 000 (land: R400 000; building: R1 215 000 (VAT excluded)) calculated by Mr Right, a sworn appraiser. On this date of the revaluation the property’s estimated remaining useful life changed to 20 years and a residual value remained unchanged.

No entries were made with regards to the revaluations and recognition of depreciation for the year ended 28 February 20.19. It is the policy of Wonderland Ltd to allocate depreciation on buildings to Administrative expenses.

3. 
   
4. Delivery motorcycle

Wonderland Ltd’s only delivery motorcycle was sold on 1 March 20.18. The transaction was entered correctly in the records of Wonderland Ltd. The original cost of this delivery motorcycle was R40 000 (VAT excluded) and the accumulated depreciation at date of sale was R36 000. The total proceeds amounted to R6 325 (including VAT at 15%).

It was replaced on 1 September 20.18 with a new delivery motorcycle for R92 000 (including VAT at 15%). It is Wonderland Ltd’s policy to recognise depreciation on the delivery motorcycle at 20% per annum on the straight-line basis and to allocate this depreciation to distribution expenses in the statement of profit or loss. Depreciation for this year must still be recognised on the new delivery motorcycle.

4. 
   
5. Machinery and equipment

It is Wonderland Ltd’s policy to recognise depreciation on machinery and equipment at 20% per annum according to the diminishing balance method. No purchase or sale of machinery and equipment took place during the year. The depreciation for the current year of R200 000 is already correctly allocated to distribution and administration expenses.

5. 
   
6. Loans

The unsecured long-term loan originated on 1 March 20.18 and is repayable in equal annual instalments of R20 000 on 1 March every year. Interest for the current year at the rate of 10% must still be provided for and is payable on 5 March 20.19.

6. 
   
7. Profit before tax

Profit before tax for the year was determined after taking the following was taken into account.

	Rand
Profit / Loss on disposal of delivery motorcycle	?
Distribution expenses	53 600
Administrative expenses	3 421 700
Interest on bank overdraft	13 800

7. 
   
8. Revenue

Revenue for the year amounted to R 10 350 000 and represents net sales to third parties (including VAT at 15%) of goods purchased for resale. Wonderland Ltd maintained a 45% gross profit percentage throughout the year.

8. Taxation

The accountant estimated the company’s current tax charge for 20.19 at R20 972. An amount of R16 200 was made in respect of provisional tax payments for the 20.19 tax year.

9. 
   
10. Dividends

The directors of Wonderland Ltd declared on 25 February 20.19 a dividend of 5c per ordinary share. No entries have yet been made with regards to the dividends. Dividends tax is levied at 20% of the dividend to be distributed to the shareholders.

10. 
    
11. VAT vendor

Wonderland Ltd is a registered VAT vendor.

4.1 Prepare the Statement of comprehensive income of Wonderland Ltd for the year ended 28 February 20.19.

4.2 Prepare the Statement of changes in equity of Wonderland Ltd for the year ended 28 February 20.19. The total column is not required

4.3 Prepare the "Property, plant and equipment-note" for Wonderland Ltd for the year ended 28 February 20.19. The total column is not required.