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Kasi Chill and Vibes Ltd is a respected manufacturer of street fashion wear and sells these items for cash. Kasi Chill and Vibes Ltd is

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Kasi Chill and Vibes Ltd is a respected manufacturer of street fashion wear and sells these items for cash. Kasi Chill and Vibes Ltd is listed on the Namibian Stock Exchange and has a 30 June year end. The following trial balance relates to Kasi Chill and Vibes Ltd for the financial year ended 30 June 20.20 Note Dr Cr R R 1 1 200 000 1 5 000 000 Share capital - Ordinary shares - Cumulative preference shares Revaluation surplus at 30/06/20.19 Retained earnings at 30/06/20.20 150 000 6 200 000 5 600 000 Revenue 2 200 000 250 000 Finance income earned Dividends received Preference dividend paid Interest paid 100 000 60 000 2 500 000 Cost of sales 3 750 000 Other operating expenses NOTES 1. Share capital 2019 At 30 June 2014 the issued share capital consisted of 1,2 million ordinary shares of R1 each. On 1 July 2017, the board of directors was given the option to take up 1600 000 ordinary shares at R1,50 each, while the average market price of ordinary shares was R2,50 Cumulative preference shares consisted of 800 000 non-redeemable preference shares. The dividend rate is 12 cents per cumulative preference share. The payment of a preference dividend is solely at the discretion of the directors and any unpaid dividends accumulate for possible future declaration The preference shares are classified as equity in accordance with IAS 32 Financial Instrument: Presentation Interest accrued at year end is included in accounts payable. 2. Finance Income Earned Finance income is accounted for by using the effective interest rate method over the period of the instalment sale agreement. 3. Other operating expenses Other operating expenses include the following: Donations to charity (Not tax deductible) 4000 Required: (a) Provide the following notes to the annual financial statements of Kasi Chill and Vibes Ltd for the year ended 30 June 20.20 Earnings per share

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