Bright Minds is a consulting firm that provides business solutions to small and mediumsized enterprises (SMEs). The entitys financial year ended on 31 December. You are presented with the following pre-adjustment trial balance of Bright Minds for the financial year ended 31 December 2023: Account Debit R Credit R Cash and Bank 125 000 Capital 200 000 Fixed deposit investment 500 000 Trade receivable 175 000 Inventory 250 000 Office equipment at cost 370 000 Accumulated depreciation office equipment (75 000) Trade payables 100 000 Retained earnings 01 January 2023 581 000 Profit for the year 495 000 Drawings 31 000 Total 1 376 000 1 376 000 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 for R48 000 to cover their office equipment for 12 months. 2. On 31 December 2023, the company provided consulting services worth R8 000 to a client who has not paid yet. 3. On 31 December 2023, Bright Minds earned interest on a fixed deposit with a bank. The fixed deposit amount was R500 000, and the interest rate computed at 6% per 4 HFAC130-1-Jul-Dec2023-SA1-LVN-20230821-V2 annum. At the financial year end, one months interest has accrued but has not yet been received by the company. 4. On 31 December 2023, Bright Minds discovered that some of the inventory was damaged and no longer usable. The inventorys cost was R5 000, and the net realisable value is R1 000. 5. On 31 December 2023, the company discovered that it overstated the depreciation of the equipment by R5 000. All other depreciation calculations for the year were accurately completed and accounted for. Additional information: The company uses the straight-line method to calculate depreciation, and the useful 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 cost allocation method to record inventory. Ignore VAT and Income tax for this question. REQUIRED: 1.1 Prepare the general journal entries to account for transactions 1 - 5 of Bright Minds for the financial year ending 31 December 2023. Journal dates and narrations are not required. (15 marks) 1.2 Prepare the statement of financial position for Bright Minds as at 31 December 2023. Assume a Net profit of R466 500 was made for the current financial 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)