Veggies R Us is a business which sells Fruit & Vegetables to the general market. The following is a pre-adjustment trial balance for financial year ended 31 December 2021: Sales DR CR NOTE R R 350 000 Purchases Transport in Transport out Selling expenses Advertising expenses 250 000 15 000 6 150 35 000 1. 12 000 Rent expense 2. 13 500 Salaries and wages 21.750 Inventory on hand at beginning of year 3. 18 000 Accounts Receivable 4. 23 500 Provisions for doubtful debts 5. Bank overdraft 350 17550 Property plant and equipment 6. 32 000 Accumulated depreciation on Property plant and equipment 4 100 Motor Vehicles 6. 24 500 Accumulated depreciation on Motor vehicles Capital 7.500 48 000 Distributions 12 100 Accounts Payable Notes: 36000 463 500 463 500 The following transactions have not yet been considered: 1. On 1 June 2021, the business paid R12 000 to Bees Knees Advertising agency to run an advertising campaign from 1 July 2021 to 30 June 2022. 2. Rent for December 2021 was only paid during January 2022. 3. The business utilises the periodic inventory system. An inventory count on 31 December 2021 revealed that R14 500 worth of inventory was left unsold. 4. On 31 December 2021, Abigail Jonsson, a debtor of the business, owed R7 500 for credit sales made during the year. The business received a letter from Abigail Jonsson's lawyer stating that 35 cents in every Rand would be paid during January 2022 as full and final settlement of her debt owed. 5. It is the policy of the business to maintain the provision for doubtful debts at 5% of Accounts Receivable. 6. The business recognises depreciation on non-current assets as follows: a. Property, Plant and Equipment: b. Motor vehicles: 15% utilising the reducing balance method 25% utilising the straight line method 7. The following expenses were incurred during December 2021 but only have been paid during January 2022: a. Selling expenses: b. Salaries and wages: R350 R750 Page 3 of 6 8. At the end of December 2021, the debtors' clerk was booked off ill with covid. As a result, R3 500 worth of sales were made on credit that were only invoiced during January 2022. REQUIRED: a) Draft the Statement of Profit or Loss for the period ended 31 December 2021. b) Draft the Statement of Financial Position for the period ended 31 December 2021. c) Record the closing journal entries for the year ended 31 December 2021. (27 Marks) (11 Marks) (21 Marks)