4 HFAC130-1-Jul-Dec2022-FA1-GC-V2-28072022
4. The physical count concluded on 31 December 2021 revealed that inventory on hand had a cost of R 401 200 and a net realizable value (NRV) of R395 300.
Required:
a) Prepare the general entries required to record each transaction on additional information point 3. (15 marks)
b) Prepare the statement of comprehensive income for Gabex Electronics for the year ended 31 December 2021. (10 marks)
c) Prepare the statement of financial position for Gabex Electronics as of 31 December 2021.

 

Gabex Electronics buys and sells computer accessories and also offers computer training to business clients. The firm's financial year-end is 31 December. Gabex Electronis pre-adjusted trial balance as at 31 December 2021 Dr Capital Retained earnings Bank loan (12%) Furniture and equipment, at cost Motor vehicles, at cost Investment: Fixed deposit account Inventory (1 January 2021) Trade receivables Prepaid insurance Stationary on hand Cash at bank Trade payables Sales Fees income Interest income Purchases Sales returns Drawings Carriage outwards (delivery costs) Rent, water and electricity expenses Salaries and wages Salaries and wages Telephone expenses Interest expense 306 800 442 500 148 680 342 200 238 714 135 936 44 722 213 698 510 940 50 740 64 546 18.290 175 584 148 916 26 252 67 850 33 994 2 969 352 Cr 557 196 454 654 283 200 220 188 1 165 840 280 840 7434 2 969 352