You have been appointed to assist the accountant of Catalyst (Pty) Ltd to prepare the financial statements for the year ended 31 December 2023. You have been provided with the following financial information for the year ended 31 December 2023 : Additional information: 1. No Interest has been paid or accrued on the loan. 2. No Preference dividend has been paid or accrued for. Preference share dividends must be treated as interest expense as these shares are redeemable. 3. A utility bill for R360 000 relating to December 2023 was received in January 2024. Payment of this bill was made in January 2024. 4. Provision for credit losses is maintained at a percentage of 7.5% of the gross trade receivables balance. 5. Closing Inventory on 31 December 2023 has been valued at R6000000. 6. An expert independent valuer determined the fair value of the buildings at the beginning of the year as R10 500000 . The revaluation surplus will be realized through use of the asset over its remaining useful life. The company applies the elimination method to account for revaluations. Assume no tax implications on the revaluation. 7. Depreciation is calculated using the following methods: - Buildings 5.00% on straight-line basis. This depreciation is allocated to administrative expenses. - Plant 10.00% on reducing balance method. This depreciation is allocated to cost of sales. - Motor vehicles- units of production method. Motor vehicles are expected to travel 100000 kms over their useful life. Kilometres travelled during the year amounted to 25000kms. This depreciation is allocated to distribution costs. 8. Motor vehicles with a cost of R800 000 and accumulated depreciation of R480 000 were sold at the end of the current year for R570 000 which was received on the date of sale. 9. New land was purchased on 30 December 2023 for R2 400000 of which R1 200000 was paid immediately and the remaining R1 200000 will be paid in 2 years' time. It is assumed that this transaction has a significant financing element, and an appropriate market related discount rate is 12% per annum. Round off the final answer to the nearest rand. 10. Taxation accrual for the year ended 31 December 2023 was estimated at R680000. 11. An ordinary share dividend of R500 000 was declared at the end of 2023. 12. A transfer of R1 000000 was made from retained earnings to general reserves at the end of the financial year. 13. The company prepares its Statement of profit or loss and other comprehensive income in accordance with the function method. Required: Q.1.1 Discuss which elements of the statement of financial position the acquisition of the (19) land could affect. Indicate clearly whether each element increases or decreases. Support your answers with definitions and recognition criteria from IAS 1 - Presentation of financial statements. Q.1.2 Prepare all the journal entries for additional information 1 to 13. Journal narrations (46) are not required. Q.1.3 Prepare the property, plant and equipment note for the year ended 31 December (17) 2023. A total column is required. Q.1.4 Prepare the statement of profit and loss and other comprehensive income for the (18) year ended 31 December 2023. END OF PAPER