Please answers question 2.1 and 2.2 The following information relates to Talk Less and Chat More Ltd (TLCM"). TLCM was initiallyincorporated on 1 March 2009. The company specialises with selling vouchers that are used forchatting on an app called chatter. TLCM current financial year ends on 29 February 2020. On theincorporation of the TLCM, the following information was listed on the memorandum of incorporati("MOI") of the company:Authorised share capital:• 500 000 Ordinary par value shares @ R2.50 per share,260 000 10% Non-redeemable par value preference shares @ R1.60 per share,195 000 8% Convertible no par value (NPV) preference shares.On 28 February 2019, the following balances appeared in the records of TLCM Ltd:Ordinary shares capital500 00010% Non-redeemable preference share capital192 0008% Convertible preference share capital162 400Share premium108 000Retained earnings225 670The following transactions occurred during the current financial year and should still betaken into account:1. On 30 June 2019, TLCM Ltd converted all the issued ordinary shares into no par value shares.When the shares were issued, a share premium of RO.30 per share was attained.2. On 1 August 2019 the shareholders of TLCM Ltd authorised the issue of shares to the public inorder to expand the business. On the same day, a prospectus was issued to invite the public tosubscribe for the following shares:• 65 000 Ordinary shares at R3.04 per share,• 40 700 10% Non-redeemable preference shares at R1.90 per share.The closing date for the applications of the shares, as it appeared on the prospectus was31 October 2019.Applications for the shares were received on the dates as listed below:31 August 2019:• 40 000 Ordinary shares,• 50 000 10% Non-redeemable preference shares.30 September 2019:• 20 000 Ordinary shares.On 31 October 2019 the directors allotted the shares and excess applications were repaid(refunded) on the same day. 3. On 30 November 2019, 40% of the opening balance of the 8% Convertible preference shareswere converted into ordinary no par value shares at a conversion cost of R3.20 per share. Theseshares were initially issued at R2.03 per share.4. The profit after tax for the year ending 29 February 2020 was R901 700.5. On the last day of the current financial year, an ordinary dividend of 40 cents per share wasdeclared. All the dividends were settled in the next financial year on 31 March 2020.• 60% of the ordinary shareholders are natural persons whereas the rest are owned by SouthAfrican companies.• 20% of the 10% Non-redeemable shareholders are held by South African companies and therest are owned by natural persons.• All the 8% Convertible preference shares are owned by natural persons.Due to a cash flow problem, TLCM Ltd decided to settle 50% of the dividends declared to theordinary shareholders who are natural persons by way of capitalisation issue.6. You can assume a dividend tax rate of 20%.REQUIRED - QUESTION 22.1 Prepare the statement of changes in equity of TLCM Ltd for the yearended 29 February 2020. Your answer should be in accordance withthe requirements of IAS 1- Presentation of Financial Statements.The total column is not required.Show all your calculations.Communication skills – layout and structure2.2 Calculate the dividend tax on the dividends declared for the yearended 29 February 2020.

Talk Less Chat More Ltd. (TLCM) Statement of changes in equity for the year ended 28th February,…

REQUIRED - QUESTION 2 2.1 Prepare the statement of changes in equity of TLCM Ltd for the year ended 29 February 2020. Your answer should be in accordance with the requirements of IAS 1- Presentation of Financial Statements. The total column is not required. Show all your calculations. Communication skills – layout and structure 2.2 Calculate the dividend tax on the dividends declared for the year ended 29 February 2020.