Question

Boostmobile Inc. is a cellphone manufacturer and service provider. On Nov 1^st, 2013, they sell 1000 B-bundles to consumers for $800 each and receive cash from consumers. Each B-bundle contain one B-phone, a 6 month subscription for the Boost-net cell-phone service, and a packet of boost candy. B-phones retail for $750, Boost-net service retails for $25 a month, and the boost candy retails for $5 a pack. Each B-phone costs $400 to manufacture, while each boost candy pack was purchased from a manufacturer for $1.50 including freight costs.

Provide the transactional journal entries for Nov 1^st, 2013.

Answer 1

Date	General Journal	Debit	Credit
November 1, 2013	Cash (1000 x $800)	800000
	Sales revenue - B-phone		662983
	Sales revenue - Boost candy		4420
	Unearned service revenue		132597
	(To record sale of B-bundles)
November 1, 2013	Cost of goods sold - B-phone (1000 x $400)	400000
	Cost of goods sold - Boost candy (1000 x $1.50)	1500
	Inventory - B-phone		400000
	Inventory - Boost candy		1500
	(To record cost of goods sold)

The intermediate calculations have not been rounded off while the final answers have been rounded off to the nearest whole dollar. Kindly round off as required since no specific instructions have been provided with the question regarding rounding off. Answers may vary due to different rounding off.

The sales revenue, cost of goods sold, and inventory for B-phone and Boost candy have been shown separately for better clarity. Kindly enter answers as required.

Working:

Performance Obligation	Standalone Selling Price	Percent of total standalone price	Allocation of Transaction Price
Sale of B-phone (1000 x $750)	750000	82.9%	662983
6 month subscription service (1000 x $25 x 6)	150000	16.6%	132597
Packet of boost candy (1000 x $5)	5000	0.6%	4420
Total	905000	100.0%	800000