Please help me with this. In desperate need of help.

QUESTION 1 (12 marks : 22 minutes) Fun Beach Shop deals in a wide variety of beach products and beachwear. The business has set up a department to market a recently introduced safety product called Dolphin Fins Sun Tan Lotion. 0n 1 January 2019. the beginning of its financial yearI the business had 120 Dolphin Fins on hand at a cost of R300 each. During the 2019 financial year the following transactions took place in the new department: January Bought 30 Dolphin Fins for R315 each on credit. February Sold 100 Dolphin Fins tor R68 000 on credit. May Five (5) of the Dolphin Fins sold in February were returned and accepted back into inventory. August Bought 20 Dolphin Fins for R412 each on credit. Paid customs duty of R500. October Sold 60 Dolphin Fins for R45 000 cash. December A stock-take on 31 December revealed that there were 63 Dolphin Fins on hand. REQUIRED; (a) Assuming Fun Beach Shop uses the perpetual method and the firstin-first-out {FIFO} basis when recording inventory, calculate the value of cost of sales for the year ended 31 December 2019. Ensure that you present your answer in the specified format by redrawing the lollowing table onto your answer page: (7) PURCHASED SOLD COS ---- m Cost Cost Cost Cost Cost Cost (b) Assuming Fun Beach Shop uses the periodic method and the weighted average basis when recording inventory, calculate: (i) The cost of inventory on hand on 31 December 2019. (ii) The cost of sales for the year ended 31 December 2019. (216) Ensure that you present your answer in the specified format by redrawing the following table onto your answer page: COST OF GOODS AVAILABLE COST OF GOODS SOLD FOR SALE ON HAND Average Average Average cost cost cost - - r unit Total Units oer unit Total Units uer unit Total (0) Assuming Fun Beach Shop operates a manual recording system, discuss which inventory mm and inventory luatign method Fun Beach Shop should use in their type of business. giving reasons for your recommendation. (2%) Note: Closing entries are n_ot required. Show clear workings. Work 10 the nearest R1 . QUESTION 2 (14 marks : 25 minutes) Assume a Value Added Tax (VAT) rate of 15%. Pro-Golf Enterprises is a retail business specialising in golf equipment. On 1 March 2020 a fire broke out in the head office, destroying most of the accounting records. The accountant, Bongiwe Bonza, has recovered a few journals and a list of balances at 31 January 2020. The business uses the periodic method to record inventory. The following is a list of balances, inter alia, which Bongiwe Bonza drafted on 31 January 2020. The relevant amounts are inclusive of VAT. R Loan: XXX Bank (18%) 80 000 Accounts payable contro 18 342 Accounts receivable control 11 225 Input VAT Output VAT 6 480 Inventory (01/03/2019) 32 506 Bank (Cr) 3 248 Sales 215 808 Returns inwards 21 307 Purchases 69 012 Rent received 18 408 Electricity expense 2 925 Salaries and wages expense 48 261 Advertising 38 408 Interest expense 13 200 The following journals, prepared in February 2020 were salvaged from the fire: R The total column in the sales journal 49 326 The sales column in the cash receipts journal (includes discount allowed to customers) 83 650 The purchases column in the cash payments journal (includes discount received from suppliers The purchases column in the purchases journal The creditor's column in the cash payments journal 4/ 6 The debtors' column in the cash receipts journal You are also supplied the following information: 1 . The cost of inventory counted on 29 February 2020 amounted to R75 500. 2. The business rents out a portion of its warehouse to a small storage business. The amount of rent received on the list of balances at 31 January 2020 represents the rent for the period 1 March 2019 to 29 February 2020. There is an increase of 10% p.a. on 1 March 2020. The correct amount of rent for March 2020 was received and deposited on 20 February 2020. There were no other rental receipts during February. 2QUESTION 2 (continued) 3. The only EFT payments made and discovered during February 2020 were: No. 20045 South African Revenue Service for VAT R6 480 No. 20046 Salaries and wages for February 2020 R31 920 No. 20047 Electricity for February 2020 R1 449 REQUIRED: Reconstruct the following accounts as they would appear in the General Ledger of Pro-Golf Enterprises and balance/close the accounts on 29 February 2020: (a) Accounts receivable control (31/2) (b) Output VAT (c) Purchases (7 ) (31/2) Dates and folio reference numbers are not required. Note: Show all workings clearly. Work to the nearest R1. WQUESTION 3 (22 marks : 39 minutes) Super Surfboard Manufacturers CC owned the following non-current assets at the beginning of the year ending 31 December 2019: DESCRIPTION ACQUISITION DATE COST 1. 4 Forklift 01/07/2017 R50 000 each Delivery vehicle 01/09/2018 R81 000 Land 01/01/2017 R750 000 Manufacturing plant 01/03/2017 R1 500 000 The depreciation policy of these non-current assets were as follows: 1. Forklifts at 25% p.a. on the straight line with no residual value. 2. Delivery vehicles at 3313% p.a. on diminishing balance with no residual value. Land is not depreciated. 4. Manufacturing plant at 10% p.a. on the straight line with R15 000 residual value. During the current financial year the following transactions occurred: 1 . One forklift was scrapped on the 31 March 2019, due to engine damage that was not considered worthwhile to repair. 2. The delivery vehicle was sold on 31 August 2019 for R65 000 cash. Super Surfboards Manufacturers CC needed a much bigger truck to deliver an increased number of surfboards. A new delivery vehicle was purchased for R180 000 on the same day and paid for by EFT. REQUIRED: (a) Prepare entries in general journal form, without narrations, to record the transactions and adjustments on 31 March 2019 and 31 August 2019, which are necessary from the information in point's No. 1 and No. 2 above. The end of year adjusting entry for depreciation is not required. (10) (b) Prepare the profit and loss summary account as it would appear in the ledger of Surfboard Manufacturers CC for the year ended 31 December 2019, assuming a gross profit for the year of R983 000 (71/2) (c) On 23 March 2020 Super Surfboard Manufacturers CC purchased equipment with a catalogue price of R375 000. In line with the terms agreed upon with the supplier, the equipment was delivered on 27 March 2020 and additional costs were incurred to get the equipment ready for use. These costs include transport costs, R10 000, installation costs, R20 000 as well as the cost of fuel, R5 000 required to run the equipment. The asset became available for use on 31 March 2020 but because of the national lockdown, the asset was only brought into use on 1 June 2020. The bookkeeper was not sure how to record these costs and approached you for assistance. Explain to the bookkeeper what entries should be done to record each of these costs, giving the reason why different categories of costs are treated (recorded) differently. Explain also to the bookkeeper the date the recording of depreciation should commence. (41/2) Note: Show all workings clearly. Work to the nearest R1. 4