QUESTION 2 (20 MARKS) Toyland Manufacturers commenced business on 1 March 2020. They manufacture toys for...

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QUESTION 2 (20 MARKS) Toyland Manufacturers commenced business on 1 March 2020. They manufacture toys for which the following machines were purchased for cash : Machine A, R550 000, purchased and taken into use 1 March 2020. Machine B, R660 000, purchased 15 August 2020 and taken into use 1 September 2020. Two delivery vehicles, costing R275 000 each, were purchased for cash. The vehicles were taken into use on 1 June 2020. On 31 May 2021 machine A was replaced by machine C. The purchase price of machine C was R825 000. As machine A was traded in, Toyland Manufacturers only has to pay in R385 000 cash. Depreciation is provided for at 20% per annum using the straight line method on machinery and 20% per annum using the diminishing balance method on delivery vehicles. All purchase and selling prices include VAT. Toyland is registered for VAT. VAT is calculated at 10%. REQUIRED Record all journal entries (excluding closing entries and narrations) which relate to the above-mentioned information for the years ended 28 February 2021 and 2022. Note: Journal narrations are NOT required. SHOW ALL CALCULATIONS!!!! (30) QUESTION 2 (20 MARKS) Toyland Manufacturers commenced business on 1 March 2020. They manufacture toys for which the following machines were purchased for cash : Machine A, R550 000, purchased and taken into use 1 March 2020. Machine B, R660 000, purchased 15 August 2020 and taken into use 1 September 2020. Two delivery vehicles, costing R275 000 each, were purchased for cash. The vehicles were taken into use on 1 June 2020. On 31 May 2021 machine A was replaced by machine C. The purchase price of machine C was R825 000. As machine A was traded in, Toyland Manufacturers only has to pay in R385 000 cash. Depreciation is provided for at 20% per annum using the straight line method on machinery and 20% per annum using the diminishing balance method on delivery vehicles. All purchase and selling prices include VAT. Toyland is registered for VAT. VAT is calculated at 10%. REQUIRED Record all journal entries (excluding closing entries and narrations) which relate to the above-mentioned information for the years ended 28 February 2021 and 2022. Note: Journal narrations are NOT required. SHOW ALL CALCULATIONS!!!! (30)