QUESTION 1 [30 MARKS) Kinta Baloyi Limited has an authorised share capital of 2 500 000 ordinary shares of no-par value, of which 600 000 had already been issued by the time the trial balance was prepared. The financial director requests your accounting knowledge in preparing the financial statements for the year ended 31 December 2021, and provides you with the following information: Trial balance at 31 December 2021 Property Furniture auipment (carrying value) Investments Bank Trade receivables Debit R 1 300 000 925 000 150 000 35 000 Credit R 222 000 Inventory 201 000 Ordinary share capital (600 000 shares) Retained earnings (1 January 2021) Revaluation surplus (1 January 2021) 14% Loan from SABA Bank Trade payables Current tax payable Sales Dividend income 1 200 000 210 000 225 000 100 000 90 000 152 000 4 900 000 55 000 Interest income 15 000 Profit on disposal of equipment 20 000 Cost of sales 3 020 000 Distribution costs 360 000 Operating costs Administrative costs 72 000 330 000 Tax expense 352 000 6 967 000 6 967 000 Additional information: 1. On 31 December 2021 it was estimated that the inventory has a net realisable value of R180 000. No entries have yet been made for this. 2. The loan from SABA Bank was acquired on 1 January 2020 and is repayable in full on 1 January 2022. The Interest is payable annually in arrears on 1 January. Provide for the interest outstanding on the loan for the current financial period.