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Question 1 Inventory, GST and Statement of Comprehensive Income (SOCI) (27 marks) Zoom Limited, a GST registered company, sells camera lenses. All of Zoom Limited's

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Question 1 Inventory, GST and Statement of Comprehensive Income (SOCI) (27 marks) Zoom Limited, a GST registered company, sells camera lenses. All of Zoom Limited's suppliers are also GST registered. Some of the items listed on Zoom Limited's trial balance included the following accounts: Cash Accounts Receivable Inventory Accounts Payable GST Clearing Sales Sales returns and allowances Sales discounts Cost of goods sold At the end of August 2021, a fire destroyed most of the company's accounting records. An accounting firm was hired to create summary journal entries (for the entire year) relating to purchases and sales of inventory for the year ended 31 August 2021. The periodic inventory system is followed; The gross" method for recording purchases is used, and All purchases and sales of inventory are on credit, terms 2/10 net 30. 2 Adjustment Journal Entry information S 1 Credit Sales (including GST) 2,231,000 Sales allowances (excluding GST) 40,000 3 Cash Receipts from customers within the discount period 2,254,000 4 Inventory purchases on credit (including GST) 943,000 5 Inventory purchase returns and allowances (excluding GST) 30,000 Cash Payments to suppliers within the discount period 788,900 The accounting firm determined that the average gross profit for Zoom Limited is 40%. au REQUIRED: a) Using the information in the table, prepare the journal entries for the year ended 31 August 2021. (20 marks) b) Calculate the cost of goods sold and gross profit by completing the gross profit section of the Statement of Comprehensive Income for the year ended 31 August 2021. (7 marks) Question 1(a) - 20 marks Using the information in the table, prepare the journal entries for the year ended 31 August 2021 Fill in your answer in the boxes provided. Not all boxes need to be completed. Account Debited Account Credited Debits Credit $ 1. 2. 3. 4 LO 6

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