Answered: Sim-Jo-La Electronics sells a variety…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter21: Cash Budgeting (cashbud)

Section: Chapter Questions

Problem 1R: On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is...

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The background information has been provided in the photos attached.

B) Given that selling, distribution and administrative costs associated with the V380PRO brand of WIFI SMART camera bulbs for the quarter were $27,255, $42,400 and $145,600 respectively. Prepare an income statement for Sim-Jo-La (V380PRO) for the period April 30, 2020 to June 30, 2020.

C) Journalize the transactions for the month of April, assuming the company uses a:

i) Periodic Inventory System

ii) Perpetual inventory system

Sim-Jo-La Electronics Perpetual Inventory Record April- June 2020
Date
Description
Purchases
Cost of Goods Sold
Inventory Balance
Total Cost
Quantity
Quantity
Total Cost
$108,750
$688,500
$797,250
Quantity
Unit Cost
Unit Cost
Total Cost
Unit Cost
$108,750
$688,500
Opening Balance
$7,250
$7,650
$7,250
$7,650
15
15
April 7th
Purchases
90
90
105
April 30th
$7,250
$7,650
$108,750
$459,000
$567,750
Sales
15
60
30
$7,650
$229,500
75
$229,500
$654,800
$884,300
$229,500
May 6th
$8,185
$654,800
$7,650
$8,185
Purchases
80
30
80
110
May 9th
Purchases Returned
-5
$8,185
-$40,925
30
$7,650
$8,185
$613,875
$843,375
75
105
$229,500
$261,920
$491,420
-$22,950
May 31st
Sales
30
$7,650
105
32
$8,185
-62
$8,185
$8,185
62
43
$351,955
June 5th
Sales Returned
$7,650
$351,955
$22,950
$374,905
$351,955
$22,950
$960,300
$1,335,205
-3
43
3
$7,650
46
Purchases
$960,300
$8,185
$7,650
$8,730
June 14th
110
$8,730
43
3
110
156
$351,955
$22,950
$611,100
$986,005
$34,920
$2.057.145
June 30th
$8,185
$7,650
$8,730
Sales
43
3
156
70
-116
116
40
$8,730
$349,200
Inventory Loss
Ending Balance
June 30th
4
$8,730
-4
June 30th
290
$2.371.425
112
$8,730
$314,280
36

Transcribed Image Text:Sim-Jo-La Electronics sells a variety of electronic devices including a variety of WIFI SMART camera bulbs. The business began the second quarter (April to June) of 2020 with 15 (V380PRO) camera bulbs at a total cost of $108,750. The following transactions relating to the “V380PRO" camera bulbs were completed during the quarter. April 7 90 bulbs were purchased at a cost of $6,850 each. In addition, the business paid freight charges of $800 cash on each bulb to have the inventory shipped from the point of purchase to their warehouse. April 30 The sales for April were 75 bulbs which yielded total sales revenue of $803,250. (15 of these bulbs were sold on account to longstanding customers of the business) Мay 6 A new batch of 80 bulbs was purchased at a total cost of $654,800 Мay 9 Upon inspection of the bulbs purchased on May 6, five (5) of the units were found to be defective and were returned to the supplier. Мaу 31 During the month 62 of the camera bulbs were sold at a price of $11,450 each. s wer A customer, to whom 7 of the bulbs were sold during the first business day of May, returned 3 units of the merchandise, as they were of another make & model. June 5 June 14 Owing to an increased demand, a further 110 bulbs were purchased at a cost of $9,000 each; the supplier gave a 3% quantity discount on the purchase. June 30 116 bulbs were sold during June at a unit selling price of $12,250. June 30 An actual count of inventory was carried out at the close of business which revealed that there were 36 units of the V380PRO brand of merchandise in the store room. Unless otherwise stated, assume that all purchases were on account and received on the dates stated.

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