Question 1 Study the scenario and complete the question(s) that follow(s): Corleo Products The following extract of a pre-adjustment trial balance pertains to Corleo Products for the year ended 31 December 2018 Debit Credit R R Capital 196 324 Drawings 10 000 Buildings -Cost 345 000 Buildings - Accumulated 51 000 depreciation Loan: First Bank 60 000 Inventory 11 000 Accounts receivable 75 500 Accounts payable 96 500 Allowance for credit losses 1 400 Sales 568 750 Purchases 380 450 Commission income 1 666 Rent income 16 500 Interest on loan 2 700 Salaries and wages 98 000 Insurance 13 000 Credit losses 540 Additional information 1. 2. 3. Included in the insurance is an amount of R1 000 for January 2019 Rent has been received until the end of November 2018 Commission income of R1 340 was received on 1 December 2018, but no entry was made in the books of the business 4. 5. 6. It was decided to write off M Matthews, a receivable's account of R1 500 as he has been declared bankrupt. His estate paid out 20c in the rand, which has already been recorded. The outstanding amount must still to be recorded. Allowance for credit losses must be adjusted to 5% of the accounts receivable at the end of the year The loan was made on the 31st of March 2018 for a period of 5 years. The business pays interest at a rate of 12% per annum. Buildings must still be depreciated at 10% according to the straight-line method. Take into account that the buildings were extended on the 30th of June 2018. The total cost of the extension was R110 000 and has been recorded. Closing inventory consisted of only trading inventory. Source: Hopper. 1.2020 7. 8. Required Prepare the journal entries to record all the above transactions and adjustments of Corleo Products for the year ended 31 December 2018. No descriptions of the transactions are necessary