uestion 1 continuedAdditional information:1. Net dividend income of $180,000 and interest income of $270,000 are included in other operating income. The dividend income and the interest income were received net of income tax. The income tax rate is 10%.2. Corporation tax for the year to December 31, 2014 is estimated to be $21,600,000. The corporation tax is not yet reflected in the accounts. Corporation tax is charged at a rate of 20%.3. Deferred taxation should be decreased by $50,000.4. The audit fees for the financial year ended December 31, 2014 amounted to $2,200,000. The audit fees should be reflected under administrative expenses. The amount for audit fees for 2014 is not yet reflected in the accounts.5. The weighted average number of ordinary shares issued during 2013 amounted to 240,000,000.6. Transfer $15,000,000 to general reserves.7. In January 2014 the company made a 5 to 1 bonus issue of ordinary shares out of General Reserves. 200,000,000 ordinary shares were in issue when the bonus dividend was declared. The stated value for each share is $1. The bonus issue is not yet reflected in the accounts.8. The fair value of the investment property on December 31, 2015 was $32,000,000. The cost method is used for investment property.9. The long term loan is being repaid in equal instalments of $5,000,000 each year on December 31. All principal loan payments were made on time. No interest was outstanding at the beginning of the year.10. Current portion of long term receivables is $200,000.11. A further dividend in respect of the financial year 2014 was declared by theboard of directors on January 28, 2015, amounting to $20,000.Page 2Required:a. Prepare the Statement of Comprehensive Income for the year endedDecember 31, 2014 in a form suitable for publication. Comparative figures are not required.(15 marks)b. Prepare the Statement of Changes in Equity for the year ended December 31, 2014 in a form suitable for publication. Comparative figures are not required. (9 marks)c. Prepare the Statement of Financial Position as at December 31, 2014 in a form suitable for publication. Comparative figures are not required.(25 marks)d. Prepare the Taxation note for the Notes to the Financial Statements for the year ended December 31, 2014. Comparative figures are not required.(7 marks)e. Prepare the earnings per share note for the Notes to the Financial Statements for the year ended December 31, 2014. Comparative figures are notrequired.(4 marks)

Section A Answer question one Question 1 (60 marks) Unity Limited Trial Balance December 31, 2014 Revenue Cost of sales Other operating income Administrative expenses Distribution costs Other operating costs Interest paid Ordinary dividends paid Property, plant and equipment Allowance for depreciation Long term receivable Investment property (at cost) Cash and Bank Short term investments Trade debtors Other receivables and prepayments Closing stock Ordinary share capital General reserve Retained prots January 1, 2014 Deferred tax payable 10% Long term loans Trade creditors Other payables and accruals Corporation tax over-provision Debit 3'000 362,122 80,000 120,213 12,992 I .875 20 400,600 1,200 30,000 90,725 9.000 -. 1 1,480 4,650 62,1 12 1 286.994 '0 Credit 3'000 745,500 12,144 53,200 200,000 50,000 98,600 1 ,200 20,000 96,237 1 0, 103 1 0 1,286,994