REQUIRED a. Prepare the following notes in the financial statements of Winter Traders for the year ended 30 June 2020: OOO Property, plant and equipment Trade receivables Other current assets (alphabetical order) Inventories (alphabetical order) b. Calculate the interest expense amount and disclose it in an extract of the statement of profit or loss and other comprehensive income for the year ended 30 June 2020. INFORMATION The following trial balance was provided to you after the bookkeeper recorded some of the year-end adjustments already: Winter Traders Trial balance as at 30 June 2020 No. Debit R Credit R 17 000 25 500 1 1 6 600 3 000 2400 200 000 800 4 800 2 11 400 1 Accumulated depreciation on equipment (1/7/2019) Accumulated depreciation on furniture Advertising Allowance for credit losses Bank Capital Cash float Consumables on hand Creditors control Debtors control Depreciation Drawings Equipment Expenses payable (1/7/2019) Furniture Gross profit Inventory (1/7/2019) Interest expense Long-term loan Petty cash Rent income Salaries and wages Telephone 76 200 8 000 3 000 217 800 3 3 300 105 000 140 540 2 3 3 44 500 16 600 90 000 800 4 25 260 30 000 4 300 518 400 518 400 Additional information 1. The bookkeeper calculated the depreciation on equipment correctly as R3 500 for this financial year, but this has not yet been recorded. Depreciation for furniture was correctly calculated and recorded. During the year additional equipment amounting to R35 000 was bought. Delivery charges of R4 500 were paid to have the equipment delivered to the business premises. These transactions have already been recorded. 2. A physical stock taking revealed the following inventories on hand (the entity uses the periodic inventory system): - Trading stock, R42 000 - Consumables, R4 900 3. The long-term loan was obtained on 1 October 2018 and is repayable in installments of R10 000 every six months from this date. Winter Traders has never defaulted on any payment and all payments were recorded correctly. The interest rate of 12% is market related but decreased to 10% on 1 January 2020. Interest is payable every three months in arrears. The bookkeeper did not process the reversal of the adjustment from the previous financial period and the amount for 'Expenses payable' relate to interest expense for the previous financial year. The bookkeeper also lost track of how much interest was paid relating to this year and suspects that some of the interest paid have been paid in advance. 4. Winter Traders has two tenants, Mary Mashaba and Dezi Nell who rent separate spaces on the premises for storage purposes. Both tenants occupied the storage space for the full financial period. Mary's rent amounts to R900 per month and she has already paid the rent for July 2020. Dezi's monthly rent was increased with 10% as from 1 March 2020 and she still owes the rent for June 2020. QUESTION 1 1. NOTE: USE BRACKETS TO INDICATE NEGATIVE AMOUNTS ENTER A ZERO (0) WHERE THERE SHOULD NOT BE AN AMOUNT. DO NOT LEAVE BLANK SPACES. Winter Traders Notes for the year ended 30 June 2020 Property, plant and equipment Equipment R ? Furniture R ? Carrying amount - 30 June 2019 Cost Accumulated depreciation Movements during the year Acquisitions Disposals Depreciation ? ? Carrying amount - 30 June 2020 Cost Accumulated depreciation QUESTION 2 1. Use "No entry" for lines/amounts where there should be no entry. Do not leave blank spaces. Additional lines were added on purpose. Winter Traders Notes for the year ended 30 June 2020 Trade receivables Allowance for credit losses Debtors control R ?? R Other current assets Income Receivable Income Receivable Prepaid expense ??? Inventories Merchandise Stationery on Hand R ??? QUESTION 3 The interest expense amount will be included in the statement of profit or loss and other comprehensive income for the year ended 30 June 2020 as follows: Description R