Read the information provided below and answer the questions : Molefe Bed Shop is located in Tembisa and is owned by Petunia Molefe. She sells beds to the local community on credit and for cash. A profit mark-up of 70% is added to the cost price. She charges R300 for delivery costs. The financial year of Molefe Bed Shop ends on 30 June 2020.The accountant, Peter Radebe could not complete the financial statements he fell sick and the doctor booked him off for 4 months. The owner has requested you to assist with the preparation of financial statements. The book-keeper had already compiled the information that will be needed to complete the financial statements. REQUIRED: Use the information provided below to complete the following for the year ending 30 June 2020: 1.1 Income Statement (54) 1.2 The notes to the Financial Statements (24) 1.3 Balance Sheet (22) 3 3 2020 Grade 10 Case Study Question paper INFORMATION PRE-ADJUSTMENT TRIAL BALANCE OF MOLEFE BED SHOP ON 30 JUNE 2020 Debit Credit Balance Sheet Accounts Section Capital [01/07/2019] 564 200 Drawings 64 100 Land and Building at cost 1 540 000 Vehicles at cost 890 000 Equipment at cost 240 000 Accumulated Depreciation on vehicles [1/07/2019] 120 000 Accumulated Depreciation on Equipment [1/07/2019] 66 600 Trading Stock 1 224 000 Debtors control 36 200 Creditors control 86 200 Bank 123 200 Petty Cash 2 000 Cash Float 4 000 Fixed Deposit: RSA Bank (8% per annum) 120 000 Loan: Derby Bank 384 000 Nominal Accounts Section Sales 8 500 000 Cost of Sales 5 000 000 Debtors Allowances 128 400 Salaries and wages 789 700 Water and Electricity 54 200 Fuel 613 100 Rates and Taxes 32 100 Discount Allowed 14 600 Discount Received 19 800 Stationery 4 200 Interest on overdue account of creditors 1 400 Insurance 72 400 Bad debts 20 000 Income on deliveries 1 200 000 Rent income 82 200 Interest on fixed deposit 4 800 Advertising 48 400 Interest on current account 3 100 Bank charges 8 900 11 030 900 11 030 900 4 4 2020 Grade 10 Case Study Question paper ADDITIONAL INFORMATION A The water and electricity account for June 2020 was received, however it was not paid, R4 300. B A debtor, M Fouche, returned the bed on 29 June 2020 with a selling price of R8 500. A credit note was issued for R8 800 which includes R300 delivery costs. No entries have been made. C The following stock was on hand at the end of the financial year: Trading stock R1 220 000 Stationery R850 D Included in the amount of insurance is an amount of R15 000 for the period 1 April 2020 to 31 March 2021. E Rent has been received for 13 months. The rent was R6 000 per month before it increased by R600 on 1 January 2020. F Depreciation is calculated as follows: On vehicles at 20% p.a. on the cost price. On equipment at 15% p.a. on book value. G A new vehicle was bought for R290 000 on 1 April 2020 and was properly recorded. H The loan statement received from Derby Bank on 30 June 2020 reflected the following: Balance on 1 July 2019 R480 000 Repayments during the year (including interest) R96 000 Interest ? Balance on 30 June 2020 R420 000 Interest on loan is capitalized. R84 000 will be paid back to Derby Bank in the next financial year including interest. I J K L Interest on fixed deposit is still outstanding. There was no change in the Fixed Deposit account during the current financial year. A Fixed deposit of R35 000 matures on 30 September 2020. A debtor, P Ledwabas account of R3 200 must be written off as irrecoverable. A creditor with a debit balance of R4 500 must be transferred to the Debtors Ledger