finnancial Accounting

QUESTION 2 (25 marks) Lingard Ltd sells portable waterproof speakers to hypermarkets. You have been asked to assist in the preparation of the annual financial statements for the year ended 31 March 2022 . The following statement of comprehensive income has been prepared by the bookkeeper. On investigation of the above statement of comprehensive income, you discover the following: 1. The bookkeeper had not joumalized the reversing entry for the accrual at 31 March 2021 of rent paid in advance of R3 540 or sales received in advance of R7 870. Both these amounts related to April 2021, All other reversing entries have been processed. 2. Interest represents payments of interest for the year on a loan of R35 400 . The interest rate is 15% per annum and there have been no repayments during the year. 3. The inventory per the statement of financial position at 31. March 2021 was R7 420, which represented 70 speakers valued at R106. 4. There were 80 speakers on hand at 31 March 2022. Of these, 8 were considered worthless. Lingard Lid accounts for inventory on the periodic using the FIFO basis of allocating costs. 5. The purchases and purchase returns records for the year were as follows; 6. A Chinese supplier entered the market in late March, and was selling its speakers at R177 each. The normal selling price of Lingard was R236. 7. During March 2022 a carton of 10 speakers purchased in March was stolen. Lingard is not insured for losses of this nature. 8. No taxation or dividends are payable for the year. Required; a) Record the journal entries to finalise the books for the year ended 31 March 2022 for items 1,2,6 and 7 only. Narrations are not required. If no entry is required, state this fact and give a reason for your answer. (10 marks) b) Prepare the statement of comprehensive income for the year ended 31March 2022 , taking (18) above into account. (15 marks)