Question 1 (20 marks) The following information is available for United Ltd for the year ended 30 June 2019: Authorised share capital: 2 000 000 Ordinary shares of NS 2 1 000 000 8% preference shares of N$ 3 The following are account balances extracted from the general ledger as at 30 June 2019 in NS: Issued ordinary share capital Issued 6% preference share capital Share premium Retained earnings Revaluation reserve General reserve Land and Buildings Loan from ABSA bank 1 000 000 500 000 50 000 180 000 15 000 600 000 800 000 500 000 The following transactions pertains to the current year ending 30 June 2020: 1. On 01 September 2019 the company offered 500 000 ordinary shares at NS 2.50 and 200 000 8% preference shares at NS 3 to the public. All share application money was received on 25 September 2019. On 01 October 2019 all shares were allotted to the respective applicants and share certificates issued. 2. A valuation was undertaken by Ms. Aggie Swartz, a member of the Property Valuation Association, who valued the land and buildings at NS 1 000 000, being the current market value at 30 June 2020. 3. The directors took a decision to declare a dividend of 50c per share to every shareholder on the share registry as at 30 June 2020. The dividend is only payable on 12 August 2020. Page 16 of 24 4. On 31 May 2020, N$ 50 000 of the loan was repaid. 5. Profit for the year amounted to N$ 500 000. 6. Preference share capital is part of equity. Required: 1. Prepare the statement of changes in equity for the year ended 30 June 2020 to comply with the requirements of the Companies act (Act 71 of 2008) and International Financial Reporting Standards (IFRS) (20 marks)