HP Entity's current reporting date is 31 December 2014. On 28 December 2014 the following balances, amongst others, appeared in the records of HP Entity: Dr Cr Capital 1 920 000 Retained earnings - 1 January 2014 326 400 Drawings 192 000 Buildings - cost price (useful life 25 years) 840 000 Accumulated depreciation - buildings (1 Jan 2014) 57 600 Machinery - cost price (1 Jan 2014) (useful life 6 years) 680 000 Accumulated depreciation - Machinery (1 Jan 2014) 32 000 Loan - Bosch Supplies 340 000 Fixed term deposit 120 000 Trading inventories 149 120 Receivable A 144 000 Receivable B 192 000 Bank 282 500 Payable KK 90 600 Payable TT 74 200 Payable Jozi 15 960 Sales 2 080 000 Cost of sales 962 000 Repairs 46 000 Salaries 393 600 Water and electricity 139 300 Insurance 88 000 Doubtful debts 59 200 Bank charges 11 040 Rent income 42 000 4 638 760 4638 760 The following transactions/events still have to be recognised in the records of HP Entity: 1. The owner deposited a further R350 000 into the entity's bank account as an additional capital contribution 2. Repairs were done by Payable KK and an invoice to the amount of R14 000 was delivered. It which is payable on or before 15 March 2015. 3. Received statements from Payable Jozi for R13 700 in respect of the water- and electricity utilisation in December 2014. This amount is payable 30 days from statement date. 4. The owner took inventories with a cost price of R25 000 and a selling price of R55 000 for personal use. 5. On 1 December entered into another sub-letting agreement of a portion of the entity's property to Hyatt for a period of 3 years. Lease payment of R3 000 for December, as well as a refundable rent deposit of R3 000 was received from Lessee Hyatt on the same day. 6. Cash sale of trading inventories were made for R275 000. The cost of the trading inventories sold is R110 000 7. On 30 November, ordered inventory which was delivered on 12 December by Payable TT, together with the invoice for R72 006. The invoice is payable on or before 20 January 2015. 8. The credit manager gave authorisation to write off Receivable A's debt as irrecoverable as he has been declared insolvent 9. On 25 August a new Machinery was purchased from Bosch Supplies through a loan from the Supplier. The Machinery was delivered and put into use on 30 September. The cash price of the Machinery is R340 000. The amount due, together with the interest at 12% per year, is payable 6 months after delivery. 10. On 4 January 2015 the cheque account statement was received from the Bank. This statement indicates the bank charges for December 2014 as R2 460. 11. The investment in the fixed term deposit was made on 1 May 2014 for a 5 year term and earns interest at a rate of 7.5% per year. interest, together with the initial amount invested, is repayable at the end of the term of the deposit. The interest earned during the current reporting period has not been recognised. 12. The December net salaries to the amount of R36 000 were paid on 30 December 2014. The following represents a summary of the payroll schedule: Deductions Medical aid fund Pension fund Taxation Total deductions 6 500 8 200 13 800 28 500 Net remuneration 36 000 13. The insurance premium for December was paid to the insurance company on 3 December by means of an electronic transfer of funds. 14. Paid an amount of R24 000 to Payable Jozi by means of an electronic funds transfer. 15. Depreciation is calculated using the straight-line method on Buildings (25 years) and Machinery (6 years). Depreciation still has to be recognised for the current reporting period. REQUIRED: a) b) Recognise, by means of journal entries, the transactions and events above in the records (general journal) of HP Entity for the reporting period ended 31 December 2014. Post the abovementioned journal entries to the relevant Ledger accounts of HP Entity and, where necessary, balance the accounts. Prepare a Statement of profit or loss for HP Entity for the period ended 31 December 2014. Prepare a Statement of changes in equity for HP Entity for the period ended 31 December 2014. c) d) e) Prepare a Statement of financial position for HP Entity as at 31 December 2014