Pat Mendi owns Mobi Electronics which carry’s out repairs to all types of electronic devices and equipment. Pat provided the following list of selected account balances extracted from the pre-adjustment trial balance at 28 February 2021, the end of the current financial year:

Selected accounts from the pre-adjustment trial balance at 28 February 2021.	Debit R	Credit R
15% long term loan from Oval bank		R   60,000.00
Vehicles at cost	R   276,000.00
Equipment	R   140,000.00
Accumulated depreciation: Vehicles		R   97,200.00
Services rendered		R 745,200.00
Consumable material used	R   251,357.00
Rent income – Shane Scott		R 144,000.00
Rent income – George Bamby		R 141,900.00
Settlement discounts granted	R        3,310.00
Credit losses	R        2,350.00
Vehicle expenses	R      14,160.00
Interest on Loan	R        8,250.00

Additional Information

1. Pat sub-let part of his premises which was rented out to the following two tenants:
1.1 Tenant: Shane Scott: His tenancy agreement confirms that Shane took
occupation of the premises on 1 June 2020. There was no provision for
increase in rent until 1 June 2021. Shane has already paid his rent for the
period 1 June 2020 to 31 May 2021.
1.2 Tenant: George Bamby: His tenancy agreement confirms that he took
occupation on1 March 2020. There was no provision for an increase in rent
until 1 March 2021. George has paid his rent until 31 January 2021.

2. A debtor owing R1 500 was declared insolvent. R900 was received and
deposited but not recorded. The unpaid balance of the debtors account is
considered to be irrecoverable and must be written off as a credit loss.

3. Repairs to Pats personal car to the value of R2 500 was erroneously debited to the Vehicle expenses account. A correction needs to be recorded.

4. The interest on the loan from Oval Bank is still outstanding for February 2021. The loan was taken out on 1 April 2020 and is due to be paid on 31 March 2025.

5. Depreciation on Vehicles must be provided at 20% per year on the diminishing balance method. No vehicles were bought or sold during the current year.

6. All the equipment in use currently was bought on 1 March 2020. The estimated residual value of the equipment is R20 000. The equipment must be depreciated over the estimated useful life of 8 years using the fixed instalment method.

Required:

Prepare the following for Mobi Electronics for the year ended 21 February 2021:
3.1 General journal entries to record the adjustments for additional information Number 1 to 6. Include a brief narration. (TIP: For 3.1 prepare general journal entries to record adjustments to the balances listed in the pre-adjustment trial balance at 28 February 2021. The additional information needs to be fully understood. Determine and/or calculate the necessary changes to the relevant accounts listed in the pre-adjustment trial balance.)

3.2 The statement of profit or loss and other comprehensive income for the year ended 28 February 2021. (TIP: 3.2 requires a statement of profit or loss and other comprehensive income which must be in a format that is suitable for a service entity. Show your workings and combination of figures must be shown in brackets in the relevant line items of the above statement. Use the terminology in the question and include the features listed in IAS 1; Presentation of financial statements.)

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