Complete all of the requirements of problem 6.6, assuming that Vaucluse Ltd is registered for the GST. Assume that dollar figures quoted in problem 6.6 are ex GST. Hence, the selling price of consoles is now $132 including GST, the purchase price is now $99 including GST and the freight charge paid on 8 June is now $22 including GST.
Data from problem 6.6:
Vaucluse Ltd sells handheld video consoles for $120 each. It buys the consoles for $90 each. On 1 June 2017, 60consoles are in inventory. Vaucluse Ltd completed the following transactions during June (ignore GST):
|
June |
1 2 4 5 8 10 12 14 23 24 29 |
Sold 12 consoles for cash. Paid the supplier for 24 consoles purchased on 6 May. Terms: 2/10, n/30. Purchased 32 consoles on credit. Terms: 2/10, n/30, EXW supplier’s warehouse. A customer returned 4 of the consoles sold on 1 June and received a cash refund. The consoles were not defective in any way. Paid $20 in freight charges on 4 June purchase. Returned 3 of the consoles purchased on 4 June for credit. Sold 18 consoles on credit. Credit terms: 2/10, n/30. Paid the supplier the amount due on the 4 June purchase. A customer returned 3 consoles sold on 12 June and included a cheque for the amount due on the other 15 consoles. The consoles were not defective and were returned to inventory. Purchased 40 consoles on credit. Terms: 2/10, n/30, EXW supplier’s warehouse. Paid the supplier for the 24 June purchase. |
A physical inventory count taken on 30 June disclosed that 103 consoles were on hand.
Required
A. Prepare general journal entries to record the transactions, assuming that a perpetual inventory system is used. Ignore GST.
B. Assuming that Vaucluse Ltd completes the closing process at the end of each month, prepare entries to close the accounts.
C. Prepare an income statement for the month of June 2017.
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