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Question 2.11. The accounting clerk of Kremetart Creations needs to finalise the notes to the financial statements for the year ended 28 February 20.20 in the absence of the accountant. Kremetart Creations manufactures mini-computer units, and buys and sells computer programs locally as well. REQUIRED a. Prepare the general journal entries of Kremetart Creations at the end of the financial year to account for the items included in the additional information below. b. Prepare the note for "Inventories" for the financial year ended 28 February 20.20. INFORMATION The following asset balances were extracted from the accounting software system of Kremetart Creations as at 28 February 20 20: R 64 000 1 200 000 750 34 250 Bank Buildings Cleaning materials on hand (1 March 20.19) Debtors control Equipment Inventory: Computer programs Inventory: Finished goods (1 March 20.19) Inventory: Raw materials Inventory: Work-in-progress Land Stationery on hand 350 600 52 000 22 150 42 000 94 250 2 000 000 1 750 Additional information 1. A physical stock take on 28 February 20.20 revealed the following on hand: Inventory: Computer programs (Refer no.2) Inventory: Finished goods (Refer no.3) Inventory: Raw materials (Refer no.4) Inventory: Work-in-progress (Refer no.5) R 52 000 33 150 40 000 12 500 650 Cleaning materials on hand (Refer no.6) Stationery on hand (Refer no.7) 1 500 2. 3. 4. Some of the computer programs were replaced by current versions of the same software and the net realisable value of the inventory of programs were confirmed by a business consultant as R45 000. No transfer has been made to cost of sales yet. It was confirmed that there was a leak in the geezer into one of the storage cupboards. Some of the materials used in production was damaged and removed from stock by the production manager. No transfer has been accounted for to finished goods, The total of the cleaning materials expense account used for purchases amounted to R2 400. The owner withdrew R250 worth of stationery for his daughter's school project. No entry was made for this transaction, 5. 6. 7