QUESTIONWonderful Walls $($Pty$)$ Ltd $($Wonderful Walls'$)$ is a premier d$$cor company in SouthAfrica, specialising in delivering top$-$quality wallpapers and wall murals. The companyis a registered VAT vendor. The company's current financial year ends on $31$December $2024.$Asset register:AssetT Asset PurchascCategory DescriptionLandBuildingsEquipmenMachineryIndusirial$57$park plotProductionEquipment High$-$facilitystationsresolutionArchteDigital design $01/04/2022$achineANNEXURE F: FORMATIVE ASSESSMENT $1$in cash on $31$ August $2024$:TRaw materialsDate$01/08/2020$Overtimne to permanent employees tohelp with repairs$01/08/20204000$ O$0001/07/2022$Additional information:$01/05/2023$RestoredREQUIRED:AssetProduction. Round off to the nearest Rand.Facility BuldingDigital DesignStationsAll the repairs were finalised by $31$ August $2024.$Cos$($R$)$Instructions:Events that took place during the year that must still be accounted for:$10000$oDuring the current financial year, heavy rain waters flooded the production facilitybuilding. On $1$ July $2024,$ the following damages were reported. Assume a Value Added Tax $($VAT$)$ rate of $15\%\mathrm{.}3500001.$ Roof Damage and nsurance Claim: A significant portion of the production facilit$$sroof$,$ amounting to $20\%$ of the total factory building, was de stroyed. The total bookvalue of the production facility building was R$11000000$ on $1$ July $2024.$ Due toWonderful Walls being under$-$insured, the insurance company agreed to cover only$80\%$ of the damages incurred to this portion of the building's book value. Theinsurance payment was received on $1$ July $2024\mathrm{.}450000$DepreciationMothodSame as Oniginal$($Straight$-$Line$)$ANNEXURE F FORMATIVE ASSESSMENT $1$To repair the production facility building, the following costs were incurred and paidStraight$-$ine $($asbefore$)$A and engineering sign$-$off feesR$172500($VAT inchusive$)$Journal $1$: LandJournal $2$: BuildingsJournal $3$: Equipment$|$ResidualValue$($R$)$ Show all calodatioee dtNUA$20000002.$ The digital design station equipment was damaged and a salvage value of R$18000($no VAT$)$ was paid by a scrapyard on $20$ July $2024.$ The scrapyard is not aregistered VAT vendo$\mathrm{.}10\%$The digital design stations were replaced at a cost of R$287500($incuding VAT$).$The purchase was done on credit on $31$ August $2024\mathrm{.}500003.$ The high$-$resolution printer $($equipment$)$ was completely destroyed and the companydecided not to replace it$$ The depreciation rates and methods of the repaired assets are as follows:LifeDepreciatioSpan: n Merhedyears$3$ YearsNIA$2000020\%$JR$977500($VAT inclusive$).$ Journal dates and narrations are not required.R$195500($VAT exclusive$)40$ Straight$-$ineHFAC$132-1-$lan$-$Jun$2024-$FA$1-$LVN$-$V$3-20240119(44$ marks$)3$ Straight$-$lines and reference accordingly.Remaining Lite ofOriginal BuildingIndustrial park plotProduction facilityDigital design stationsUseful Life$$ Recording the flood damages and their financial impacts.Sraight$-$lineDirninishirngbalancePrepare the general journal entries for all the transactions that occurred during the$2024$ financial year in the records of Wonderful Walls $($Pty$)$ Ltd$.$This includes:HFAC$132-1-$Jan$-$Jun$2024-$FA$1$ LVN v$3-20240119$Accounting for the costs and recovery associated with repairs and replacements.Depreciation calculations on al assets.Residual ValueUnchanged Asper Asset RegisterUnchanged. Asper Asset Register$$ Organise the journal entries following the order of the asset registercategories. For example, start with entries related to "Land: Industrial park plot.followed by "Buildings: Production facility", etc. Example:$(44$ marks$)$