QUESTION $1(36$ marks$)$Bright Minds is a consulting firm that provides business solutions to small and medium$-$sized enterprises $($SMEs$).$ The entitys financial year ended on $31$ December.You are presented with the following pre$-$adjustment trial balance of Bright Mindsfor the financial year ended $31$ December $2023$:AccountDebitRCreditRCash and Bank $125000$Capital $200000$Fixed deposit investment $500000$Trade receivable $175000$Inventory $250000$Office equipment at cost $370000$Accumulated depreciation office equipment $(75000)$Trade payables $100000$Retained earnings $01$ January $2023581000$Profit for the year $495000$Drawings $31000$Total $13760001376000$The following transactions have not been recorded for the financial year ended $31$December $2023$:$1.$ On $1$ March $2023,$ Bright Minds signed and paid a one$-$year insurance policy forR$48000$ to cover their office equipment for $12$ months$\mathrm{.}2.$ On $31$ December $2023,$ the company provided consulting services worth R$8000$to a client who has not paid yet$\mathrm{.}3.$ On $31$ December $2023,$ Bright Minds earned interest on a fixed deposit with a bank.The fixed deposit amount was R$500000,$ and the interest rate computed at $6\%$ per$4$ HFAC$130-1-$Jan$-$June$2024-$SuppSA$1-$LVN$-20230821-$V$2$annum. At the financial year end, one months interest has accrued but has not yetbeen received by the company$\mathrm{.}4.$ On $31$ December $2023,$ Bright Minds discovered that some of the inventory wasdamaged and no longer usable. The inventorys cost was R$5000,$ and the netrealisable value is R$1000\mathrm{.}5.$ On $31$ December $2023,$ the company discovered that it overstated the depreciationof the equipment by R$5000.$ All other depreciation calculations for the year wereaccurately completed and accounted for.Additional information: The company uses the straight$-$line method to calculate depreciation, and theuseful life of the equipment is five years with no residual value. The company uses the accrual basis to prepare financial statements. The company uses the periodic recording system and weighted average costallocation method to record inventory. Ignore VAT and Income tax for this question.REQUIRED:$1\mathrm{.}1$ Prepare the general journal entries to account for transactions $1-5$ of BrightMinds for the financial year ending $31$ December $2023.$ Journal dates andnarrations are not required.$(15$ marks$)1\mathrm{.}2$ Prepare the statement of financial position for Bright Minds as at $31$December $2023.$ Assume a Net profit of R$466500$ was made for the currentfinancial year ending $31$ December $2023.$Instructions: Include all necessary headings and sub$-$headings in your statements. Assume that there were no other transactions for the year. Remember to show all calculations.$(21$ marks$)---$ End of Question $1---$