The following information is taken from the accounting records of Topaz Ltd for year ended 30 June 2022:

$

Inventory 1 July 2021 30 000 Purchases (all credit) 110 000 Sales (all credit) 180 000 Inventory 30 June 2022 18 600 Operating expenses (all cash) 35 000 The company’s mark-up is 50 per cent on cost 1 Assuming all purchases and sales were in single transactions, prepare summary journal entries and closing entries using:

a perpetual inventory b periodic inventory.

2 Prepare income statements for the year ended 30 June 2022 using both inventory systems.