QUESTION 3 Mr. Muundua Rivirura formed MRK Entity on 1 January 2015. MRK Entity has a year end of 31 December and because MRK Entity has no accountant MRK Entity has requested you as a U Bachelor of Accounting student to assist with the following transactions which have not been accounted for during January 2016. MRK Entity uses the perpetual inventory system to nocount for its inventories The following trial balance for the reporting period ended on 31 December 2015 was made available to you . MRK Entity Trial balance on 31 December 2015 Dr Cr NS Capital 900 000 Retained earnings 120 000 Machinery 540 000 Vehicles 120 000 Inventories 320 000 Trade receivables 160 000 Cash and cash equivalents 153 000 Loan 175 000 Trade and other payables 98 000 1 293 000 1 293 000 NS The following transactions for the month of January 2016 must still be recorded: 1. MRK Entity placed an order for trade inventories on 05 January 2016 for an invoice price of N$50 000. The trade inventory was delivered on 15 January 2016 and the amount was paid on the same date 2 Inventory with a cost price of N$ 30 000 was sold on 03 January 2016 to Bakkies Entity for N$50 000 and delivered on the same day, Bakkies Entity paid MRK Entity on 23 January 2016 3 On 5 January 2016 MRK Entity ordered a delivery vehicle from Delivans Entity with an invoice price of NS 60 000 in order to enhance its operations. The purchase of the vehicle was financed by a supplier's loan and the vehicle was delivered on 10 January 2016, 4 On 15 January 2016 the delivery vehicle was involved in an accident and required repairs to the amount of N$ 15 000. No Dents Entity repairs shop invoiced MRK Entity on the same day. The repairs were satisfactorily camed out on 20 January 2016. The owner paid for the repairs using his own funds on 25 January 2016 . B 5 The remuneration of the employees of MRK Entity for the month ending 31 January 2016 comprised the following: Gross remuneration N$ 230 000 PAYE - 15% of gross remuneration Sisonke Medical al contributions - 10% of gross remuneration The deductions and contributions have not yet been paid to NARA and NAMC medical aid scheme. 6. The owner withdrew N$ 2 500 from MRK Entity on 31 January 2016 for his personal use 7 The water and electricity for January 2016 amounted to NS 1 600 and has not yet been paid to the Windhoek City Municipality The bank statement for January 2016 showed bank charges of NS 150 and interest income of NS 1 500 Required: a) Recognise the abovementioned transactions in the accounting records (general journal) al MRK Entity for the month of January 2016 (27 Marks) b Present the Statement of Profit or Loss of MRK Entity for the month of January 2016. (7 Marks) c) Present the Statement of Changes in Equity of MRK Entity for the month of January 2016 (6 Marks) Note: : The effect on the accounting equation is not required Ignore VAT Round calculated amounts to the nearest dollar . [ [Total 40 marks]