Section C (42%) - Long Questions Answer any THREE out of the FOUR questions in this section in the answer book provided. If you answer more than three questions, only the first three attempted questions will be marked. Indicate in your answer book clearly which three questions you are attempting. Each question carries 14 marks. Explanations of the journal entries are not required. Correct your answers to 2 decimal places. Show your workings. Question C1 Part I Elizabeth Company Limited uses a perpetual inventory system. Prepare the journal entries for the following transactions. 30 Apr An inventory taking on 30 April reflected that the inventory on hand was $279,850 which was different from the book record of $280,000. | 3 May Purchased goods from Steve Company Limited for $900 on account. 4 Returned $90 of the goods to Steve Company Limited. 17 Paid the amount owed to Steve Company Limited. 22 Sold all the goods on hand purchased from Steve Company Limited in May with gross profit rate of 28% and the amount will be collected in June. (12 marks) Part II During the current year, Caka Company had beginning inventory $12,000, purchased goods at a cost of $22,000, and ending inventory $8,000. The company uses a periodic inventory system. Required: (a) Compute the amount of cost of goods sold. (1 mark) (b) Caka Company has a subsidiary company which sells snack (fish balls). Which inventory system is more appropriate for the subsidiary company? (1 mark)