Q 2 The following information is available for XYZ Company : Extract balance sheet for November 1 a. Cash balance $32,400 b. Account Receivable $12,300 c. Account payable $21,000 Other operating activity information: 1. Sales merchandise totalled $168,000 in December and $120,000 in November. Company has a policy of receiving cash of 80% of the totalled amount sales in the month of sales and the remaining balance in the following month. 2. Purchase merchandise totalled $110,000 for December and $85,000 for November. Company has a policy of paying 60% cash in the month of purchase and the remaining amount in the following month. 3. The Company expects the following transaction for the month of November a. Paid salaries $25,000 b. Paid utilities expense $5,000 c. Incur selling expense $8,000 d. Received Dividend revenue $4,000 e. Paid Maintenance expense $3,000 f. Depreciation expense $3,000 g. Purchase office supplies $4,000 on account. Q 2 The following information is available for XYZ Company : Extract balance sheet for November 1 a. Cash balance $32,400 b. Account Receivable $12,300 c. Account payable $21,000 Other operating activity information: 1. Sales merchandise totalled $168,000 in December and $120,000 in November. Company has a policy of receiving cash of 80% of the totalled amount sales in the month of sales and the remaining balance in the following month. 2. Purchase merchandise totalled $110,000 for December and $85,000 for November. Company has a policy of paying 60% cash in the month of purchase and the remaining amount in the following month. 3. The Company expects the following transaction for the month of November a. Paid salaries $25,000 b. Paid utilities expense $5,000 c. Incur selling expense $8,000 d. Received Dividend revenue $4,000 e. Paid Maintenance expense $3,000 f. Depreciation expense $3,000 g. Purchase office supplies $4,000 on account