Question
Section Two (40 points) 2.1. Financial information is presented below for three different companies. Hardy Yee Wang Cosmetics Grocery Wholesalers Sales revenue ZMW 90,000 ZMW
Section Two (40 points) 2.1. Financial information is presented below for three different companies. Hardy Yee Wang Cosmetics Grocery Wholesalers Sales revenue ZMW 90,000 ZMW (e) ZMW 122,000 Sales returns and allowances (a) 5,000 12,000 Net sales 86,000 95,000 (i) Cost of goods sold 56,000 (f) (j) Gross profit (b) 38,000 24,000 Operating expenses 15,000 (g) 18,000 Income from operations (c) (h) (k) Other expenses and losses 4,000 7,000 (l) Net income (d) 11,000 5,000 Instructions Determine the missing amounts. (24 marks) 2.2. Pennington Company has a balance2. in its Accounts Payable control account of ZMW 9,250 on January 1, 2017. The subsidiary ledger contains three accounts: Hale Company, balance ZMW 3,000; Janish Company, balance ZMW 1,875; and Valdez Company. During January, the following payable-related transactions occurred. Purchases Payments Returns Hale Company ZMW 6,750 ZMW 6,000 ZMW -0- Janish Company 5,250 1,875 2,250 Valdez Company 6,375 6,750 -0- Instructions (a) What is the January 1 balance in the Valdez Company subsidiary account? (2 marks) (b) What is the January 31 balance in the control account? (5 marks) (c) Compute the balances in the subsidiary accounts at the end of the month. (5 marks) (d) Which January transaction would not be recorded in a special journal? (4 marks)
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