Question 2 (30 marks) Pineapple Limited was set up in January 2011. It earns its revenue by selling fresh and canned pineapple. Pineapple Limited has its financial year end at 31 December. In the preparation of the financial statements for the year ended 3 December 2018, the following issues need to be resolved 1 The remuneration policy for the sales staff in Pineapple Limited includes a fixed monthly salary of $20,000 and 1000 sales commission calculated based on their individual monthly sales. In order to boost sales, Pineapple Limited has launched a 'Salesperson of the Year' award scheme starting from January 2018. The winner of this award scheme is the salesperson who achieves the highest sales within the year. The winner is rewarded with an additional 50% of their annual salary. The award ceremony is scheduled on 20 May 2019 2 Pineapple Limited has a lawsuit with Lemon Limited in respect of defective cans delivered to Pineapple Limited for use in November 2018. Pineapple Limited asked for a compensation payment of S200,000. The lawyer advised Pineapple Limited that Lemon Limited would probably lose the court case 3 Pineapple Limited's employment contracts state that all employees who start working with the company on or before 1 July that year will be paid at least one-month pro-rata bonus. The directors resolved in a recent board meeting on 20 February that all employees' bonus should be multiplied by a factor of 1.5. The accountant has provided for a one-month bonus amount in the books Required As the financial controller of the company, you are required to advise the appropriate accounting treatments for each of the issues identified by making reference to the appropriate accounting standards. Justify your answers