ASSIGNMENT 7: FINANCIAL ACCOUNTING Note: Value Added Tax (VAT) must be ignored. Use the formats contained in your study guide to answer questions 2 to 1. 5. 2. (20) QUESTION 1 REQUIRED For each of the following questions, write down only the letter of the correct answer e.g. 1 .6 C. Do not show any calculations. The following information relates to an item of inventory sold by RK Supp liers during May 2018: 1.1 PRICE PER UNIT R18 R20 R22 R22 MAY 01 Opening inventory 11 Purchases 25 Purchases 26 Return to supplier UNITS 15 000 30 000 38 000 2 000 42 000 31 Sales for May (FIFO) is The value of closing inventory on 31 May 2018 using the first-in-first-out method A R856 000 B R852 000 C R750 000 D none of the above Rent expense according to the Pre-adjustment Trial Balance of JKM Stores on 28 February 2018 (end of the financial year) amounted to R73 980. Rent was paid in advance for March 2018. Note that the rental was increased by 10% with effect from 01 September 2017. 1.2 will be entered in the Statement of Comprehensive Income for the year ended 28 February 2018 for rent expense A R68 040 B R5 940 C R68 289.23 D none of the above