QUESTION 1 (6 marks) Ala Moana Novelty Sales has the following information available. The company began the year with $189,000 in inventory at cost. The cost of purchases during the year was $630,000. The retail selling price of the beginning inventory was $343,636. The purchases during the year at retail was $1,145,456. Net sales at retail were $1,176,822. Required: Estimate the value of the ending inventory at cost using the Retail Method. Show calculations. Answer QUESTION 2 (8 marks) On February 1, 2021, Chan Company established a petty cash fund by issuing a cheque for $425 to Anh Nguyen, the custodian of the petty cash fund. Chan uses the perpetual inventory system. On January 31, 2021, Anh Nguyen submitted the following paid petty cash receipts for replenishment of the petty cash fund when there is $32 cash in the petty cash box: Freight-in on goods purchased for resale $88 Office Supplies to be used on a project this week_ 91 Entertainment of Clients Personal lunch for the owner, Nancy Chan Office Window Cleaning 81 Prepare the journal entries required to establish the petty cash fund on February 1 and the replenishment of the fund on February 28. Omit narratives. 62 46 LLLLLLLLL