The following information relates to Link Close Corporation:

1.	Balances at 28 February 2004:
		R
	Land and buildings at cost	250 000
	Vehicle (carrying amount)	15 000
	Inventory 28 February 2004	117 000
	Investment at cost	20 000
	Accounts Receivable	95 500
	Accounts Payable	103 250
	Members contributions: L Lock	120 000
	G Good	120 000
	Long-term loan (Cr)	70 000
	Loan from G Good at 15% p.a.	20 000
	Bank overdraft	1 725
	General reserve	10 000
	Accrued expenses	625
	Receiver of Revenue (provisional tax paid)	20 000
	Members for profit share (interim profit distribution)
	L Lock	5 000
	G Good	5 000
	Profit and loss account (net income for the year before tax interest)	81 900

2. Additional information:

2.1 The corporation was incorporated on 1 March 2003.

2.2 The vehicle was acquired on 1 March 2003 and depreciation was provided for at 25% per annum on cost.

2.3 The investment consists of 10 000 shares in ABBA Limited with a market value of R22 250.

2.4 The long term loan from Selected Bank is secured by a first mortgage over land

and buildings. The first repayment of R5 000 is due on 1 September 2004.

2.5The loan from G Good was negotiated at 1 December 2003. No provision has yet been made for the interest.

2.6The general reserve must be increased annually by R5 000.

2.7Income tax payable for the year amounted to R34 150.

Required:

1. The statement of changes in equity of Link Close Corporation for the year ended 28 February 2004.

2. The balance sheet of Link Close Corporation at 28 February 2004 in accordance with generally accepted accounting practice.

NB: Show all calculations.