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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 Bank 64 000 Buildings 1 200 000 Cleaning materials on hand (1 March 20.19) 750 Debtors control 34 250 Equipment 350 600 Inventory: Computer programs 52 000 Inventory: Finished goods (1 March 20.19) 22 150 Inventory: Raw materials 42 000 Inventory: Work-in-progress 94 250 Land 2 000 000 Stationery on hand 1 750 Additional information 1 . A physical stock take on 28 February 20.20 revealed the following on hand: R Inventory: Computer programs (Refer no.2) 52 000 Inventory: Finished goods (Refer no.3) 33 150 Inventory: Raw materials (Refer no.4) 40 000 Inventory: Work-in-progress (Refer no.5) 12 500 Cleaning materials on hand (Refer no.6) 650 Stationery on hand (Refer no.7) 1 500 2. 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. 3 No transfer has been made to cost of sales yet. 4 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. 5. No transfer has been accounted for to finished goods. 6. The total of the cleaning materials expense account used for purchases amounted to R2 400. 7 The owner withdrew R250 worth of stationery for his daughter's school project. No entry was made for this transaction