Create the Income Statement in the proper format, including net sales, COGS, gross profit, expenses and net income. Create a Statement of Owners Equity Provide an ending inventory schedule (schedule should include in good order, details by transaction) Provide the Net Book Value for the equipment Provide only the journal entries for the following: Income allocation between partners Record the monthly bad debt expense Record the monthly depreciation expense Recognize the bad debt write-off for Jenny Provided information: Beginning Inventory Schedule (listed in the order they were purchased): Beginning Inventory 8TT Units Cost Amount 130 $5.00 $650.00 135 $5.20 $702.00 156 $5.50 $858.00 421 $2,210.00 Beginning Inventory CT Units Cost Amount 140 $7.00 $980.00 160 $7.50 $1,200.00 256 $8.00 $2,048.00 556 $4,228.00 You estimate that VAC will write off 3% of their sales in bad debt. Outbound freight to customers is calculated at $0.50 per unit sold. Shipping supplies (boxes, tape, etc.) are calculated at $0.20 per unit sold. Commission expense is 10% of net sales. For the previous month Michelle sold 60% of the product. Mary sold the rest. Office supplies were $500 for the month. VAC is depreciating their packaging equipment on a straight-line basis. The equipment was purchased two years ago on Jan 1. It cost $46,000 and has a useful life of 7 years, with a salvage value estimated at $4,000. Inventory Purchases during the month: Apr 1 Purchased 50 8TT @ $5.00 each Paid inbound freight of $25 for Apr 1 purchase Apr 5 Purchased 50 CT @ $8.00 each Apr 8 Purchased 50 8TT @ $5.00 each Paid inbound freight of $25 for Apr 8 purchase Apr 10 Purchased 50 CT @ $8.00 each Apr 12 Purchased 50 CT @ $8.00 each Apr 13 Returned 40 CT found to be defective. Purchase price was $7.00 each Apr 17 Purchased 50 8TT @ $5.00 each Paid inbound freight of $25 for Apr 17 purchase Apr 20 Purchased 50 CT @ $8.00 each Apr 24 Purchased 100 8TT @ $5.00 each Paid freight bill of $50.00 for Apr 24 Apr 27 Purchased 75 CT @ $8.00 each Apr 28 Purchased 75 8TT @ $5.50 each Paid freight bill of $37.50 for Apr 28 purchases Apr 29 Purchased 140 CT @ $8.50 each Apr 30 Returned 20 CT found to be defective. Purchase price was $8 each Credit Sales during the month: Apr 3 Sold 65 8TT @ $10 each Apr 3 Sold 75 CT @ $13 each Apr 9 Sold 125 8TT @ $10 each Apr 9 Sold 155 CT @ $13 each Apr 12 Sold 75 8TT @ $10 each Apr 13 Sold 196 CT @ $13 each Apr 18 Sold 120 8TT @ $10 each Apr 18 Sold 180 CT @ $13 each Apr 23 Sold 56 8TT @ $10 each Apr 23 Sold 75 CT @ $13 each Apr 27 Sold 140 8TT @ $10 each Apr 28 Sold 55 CT @ $13 each Apr 30 Sold 130 8TT @ $10 each Apr 30 Sold 140 CT @ $13 each Beginning capital April-1 Michelle: 10,000.00 Mary: 5,000.00 Total: 15,000.00

Create the Income Statement in the proper format, including net sales, COGS, gross profit, expenses and net income. Create a Statement of Owners Equity Provide an ending inventory schedule (schedule should include in good order, details by transaction) Provide the Net Book Value for the equipment Provide only the journal entries for the following: Income allocation between partners Record the monthly bad debt expense Record the monthly depreciation expense Recognize the bad debt write-off for Jenny Provided information: Beginning Inventory Schedule (listed in the order they were purchased): Beginning Inventory 8TT Units Cost Amount 130 $5.00 $650.00 135 $5.20 $702.00 156 $5.50 $858.00 421 $2,210.00 Beginning Inventory CT Units Cost Amount 140 $7.00 $980.00 160 $7.50 $1,200.00 256 $8.00 $2,048.00 556 $4,228.00 You estimate that VAC will write off 3% of their sales in bad debt. Outbound freight to customers is calculated at $0.50 per unit sold. Shipping supplies (boxes, tape, etc.) are calculated at $0.20 per unit sold. Commission expense is 10% of net sales. For the previous month Michelle sold 60% of the product. Mary sold the rest. Office supplies were $500 for the month. VAC is depreciating their packaging equipment on a straight-line basis. The equipment was purchased two years ago on Jan 1. It cost $46,000 and has a useful life of 7 years, with a salvage value estimated at $4,000. Inventory Purchases during the month: Apr 1 Purchased 50 8TT @ $5.00 each Paid inbound freight of $25 for Apr 1 purchase Apr 5 Purchased 50 CT @ $8.00 each Apr 8 Purchased 50 8TT @ $5.00 each Paid inbound freight of $25 for Apr 8 purchase Apr 10 Purchased 50 CT @ $8.00 each Apr 12 Purchased 50 CT @ $8.00 each Apr 13 Returned 40 CT found to be defective. Purchase price was $7.00 each Apr 17 Purchased 50 8TT @ $5.00 each Paid inbound freight of $25 for Apr 17 purchase Apr 20 Purchased 50 CT @ $8.00 each Apr 24 Purchased 100 8TT @ $5.00 each Paid freight bill of $50.00 for Apr 24 Apr 27 Purchased 75 CT @ $8.00 each Apr 28 Purchased 75 8TT @ $5.50 each Paid freight bill of $37.50 for Apr 28 purchases Apr 29 Purchased 140 CT @ $8.50 each Apr 30 Returned 20 CT found to be defective. Purchase price was $8 each Credit Sales during the month: Apr 3 Sold 65 8TT @ $10 each Apr 3 Sold 75 CT @ $13 each Apr 9 Sold 125 8TT @ $10 each Apr 9 Sold 155 CT @ $13 each Apr 12 Sold 75 8TT @ $10 each Apr 13 Sold 196 CT @ $13 each Apr 18 Sold 120 8TT @ $10 each Apr 18 Sold 180 CT @ $13 each Apr 23 Sold 56 8TT @ $10 each Apr 23 Sold 75 CT @ $13 each Apr 27 Sold 140 8TT @ $10 each Apr 28 Sold 55 CT @ $13 each Apr 30 Sold 130 8TT @ $10 each Apr 30 Sold 140 CT @ $13 each Beginning capital April-1 Michelle: 10,000.00 Mary: 5,000.00 Total: 15,000.00

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Create the Income Statement in the proper format, including net sales, COGS, gross profit, expenses and net income.
Create a Statement of Owners Equity
Provide an ending inventory schedule (schedule should include in good order, details by transaction)
Provide the Net Book Value for the equipment
Provide only the journal entries for the following:
1. Income allocation between partners
2. Record the monthly bad debt expense
3. Record the monthly depreciation expense
4. Recognize the bad debt write-off for Jenny

Provided information:

Beginning Inventory Schedule (listed in the order they were purchased):

Beginning Inventory 8TT
Units	Cost	Amount
130	$5.00	$650.00
135	$5.20	$702.00
156	$5.50	$858.00
421		$2,210.00

Beginning Inventory CT
Units	Cost	Amount
140	$7.00	$980.00
160	$7.50	$1,200.00
256	$8.00	$2,048.00
556		$4,228.00

You estimate that VAC will write off 3% of their sales in bad debt.
Outbound freight to customers is calculated at $0.50 per unit sold.
Shipping supplies (boxes, tape, etc.) are calculated at $0.20 per unit sold.
Commission expense is 10% of net sales. For the previous month Michelle sold 60% of the product. Mary sold the rest.
Office supplies were $500 for the month.
VAC is depreciating their packaging equipment on a straight-line basis. The equipment was purchased two years ago on Jan 1. It cost $46,000 and has a useful life of 7 years, with a salvage value estimated at $4,000.

Inventory Purchases during the month:

Apr 1 Purchased 50 8TT @ $5.00 each

Paid inbound freight of $25 for Apr 1 purchase

Apr 5 Purchased 50 CT @ $8.00 each

Apr 8 Purchased 50 8TT @ $5.00 each

Paid inbound freight of $25 for Apr 8 purchase

Apr 10 Purchased 50 CT @ $8.00 each

Apr 12 Purchased 50 CT @ $8.00 each

Apr 13 Returned 40 CT found to be defective. Purchase price was $7.00 each

Apr 17 Purchased 50 8TT @ $5.00 each

Paid inbound freight of $25 for Apr 17 purchase

Apr 20 Purchased 50 CT @ $8.00 each

Apr 24 Purchased 100 8TT @ $5.00 each

Paid freight bill of $50.00 for Apr 24

Apr 27 Purchased 75 CT @ $8.00 each

Apr 28 Purchased 75 8TT @ $5.50 each

Paid freight bill of $37.50 for Apr 28 purchases

Apr 29 Purchased 140 CT @ $8.50 each

Apr 30 Returned 20 CT found to be defective. Purchase price was $8 each

Credit Sales during the month:

Apr 3 Sold 65 8TT @ $10 each

Apr 3 Sold 75 CT @ $13 each

Apr 9 Sold 125 8TT @ $10 each

Apr 9 Sold 155 CT @ $13 each

Apr 12 Sold 75 8TT @ $10 each

Apr 13 Sold 196 CT @ $13 each

Apr 18 Sold 120 8TT @ $10 each

Apr 18 Sold 180 CT @ $13 each

Apr 23 Sold 56 8TT @ $10 each

Apr 23 Sold 75 CT @ $13 each

Apr 27 Sold 140 8TT @ $10 each

Apr 28 Sold 55 CT @ $13 each

Apr 30 Sold 130 8TT @ $10 each

Apr 30 Sold 140 CT @ $13 each

Beginning capital April-1 Michelle: 10,000.00 Mary: 5,000.00 Total: 15,000.00

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