QUESTION $2(30$ marks$)$Hills Investors $($Pty$)$ Ltd $($Hills$)$ is a property development company that has a $31$December financial year$-$end.You are provided with an extract of the Statement of Financial Position as at $31$December $2024.$Statement of Financial Position of Hills Investors $($Pty$)$ Ltd as at $31$ December $2024.$Notes REquity and liabilitiesEquityOrdinary share capital: Class A shares$(125000$ shares$)1,2,31250000$Retained earnings$/($accumulated loss$)(1$ January $2024)1,2,3(25450)$Total equity $1224550$LiabilitiesNon$-$current liabilitiesLoan $55000005500000$Current liabilitiesTrade payables $246500$Other payables $120000366500$Total equity and liabilities $7091050$During the year ending $31$ December $2024,$ the following transactions took place andhave not yet been recorded:Note $1$: Class B share capitalOn $1$ January $2024,$ Hills invited the public to buy Class B shares. Hills offered $55000,5\%$ Class B shares with a face value of R$25$ per share. The share issue wasANNEXURE I: FORMATIVE ASSESSMENT $28$ HFAC$130-1-$Jul$-$Dec$2024-$FA$2-$AA$-$V$3-19072024$underwritten by Capital Under Ltd at a commission of $2\%$ on the selling price. Theclosing date for the applications was on $31$ January $2024,$ and on that date, $95\%$ ofthe shares had been applied for by the public. The underwriters took up the other $5\%$of shares on $31$ January $2024.$ On $29$ February $2024,$ the shares were issued. Shareissue costs of R$10000,$ excluding underwriters commission, were paid on the sameday.Note $2$: Class A share capitalOn $1$ April $2024,$ Hills offered $30000$ Class A shares to the public at a price of R$40$ pershare. On $1$ May $2024,$ the closing date for applications, shares have beenoversubscribed by $12\%.$ On $15$ May $2024,$ the $30000$ shares were issued, share issuecosts of R$12000$ were paid in cash.Note $3$: DividendsOn $31$ December $2024,$ Hills directors were so happy with the fact that they made aprofit of R$570890$ for the year, that they declared a Class A dividend of $25$ cents pershare.Additional information: Class A shares have voting rights but no right to a fixed dividend. Class B shares have no voting rights but have a right to fixed, cumulative dividenddistribution. During the $2024$ financial year, Hills made a profit of R$570890.$ Ignore VAT and dividends tax.ANNEXURE I: FORMATIVE ASSESSMENT $29$ HFAC$130-1-$Jul$-$Dec$2024-$FA$2-$AA$-$V$3-19072024$REQUIRED:$2\mathrm{.}1$ Prepare the general ledger accounts as at $31$ December $2024$ for Hills Investors$($Pty$)$ Ltd for the following accounts:$2\mathrm{.}1\mathrm{.}1$ Application for allotment $-$ Class A and Class B $(15$ marks$)2\mathrm{.}1\mathrm{.}2$ Dividends $(5$ marks$)$ Dates are required. Close off of the account is required.$(20$ marks$)2\mathrm{.}2$ Prepare the extract of the Statement of Financial Position of Hills Investors $($Pty$)$Ltd for the year ended $31$ December $2024,$ showing only the Equity.$(10$ marks$)$