College Coasters is a San Antonio-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1, 2012.

The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1, 2012, consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method.
During December 2012, the company entered into the following transactions. Some of these transactions are explained in greater detail below.
Dec. 1 Purchased 500 coasters on account from the regular supplier at a unit cost of $0.52, with terms of 2/10, n/30.
Dec. 2 Purchased 1,000 coasters on account from the regular supplier at a unit cost of $0.55, with terms of 2/10, n/30.
Dec. 15 Paid the supplier $1,600 cash on account.
Dec. 17 Sold 2,000 coasters on account at a unit price of $0.90.
Dec. 23 Paid employees $500, $300 of which related to work done in November and $200 for wages up to December 22.
Dec. 24 Collected $1,000 from customers on account.
Dec. 31 Loaded 1,000 coasters on a cargo ship to be delivered to a customer in Hawaii. The sale was made FOB destination with terms of 2/10, n/30.
Other relevant information includes the following:
a. College Coasters has not yet recorded $200 of selling expenses incurred in December on account.
b. The company estimates that the equipment depreciates at a rate of $10 per month. One month of depreciation needs to be recorded.
c. Wages for the period from December 23-31 are $100 and will be paid on January 15, 2013.
d. The $600 of Prepaid Rent relates to a six-month period ending on May 31, 2013.
e. No shrinkage or damage was discovered when the inventory was counted on December 31, 2012.
f. The company did not declare dividends and there were no transactions involving contributed capital.
g. The company has a 30 percent tax rate and has made no tax payments this year.
Required:
1. Analyze the accounting equation effects of each transaction and any adjustments required at month-end.
2. Prepare journal entries to record each transaction and any adjustments required at month-end.
3. Summarize the journal entries in T-accounts. Be sure to include the balances on December 1, 2012, as beginning account balances.
4. Prepare the year-end Income Statement, Statement of Stockholders' Equity, and classified Balance Sheet, using the formats presented in Exhibits 6.11, 5.8, and 5.6.
5. Calculate to one decimal place the inventory turnover ratio and days to sell in 2012, assuming that inventory was $500 on January 1, 2012. Evaluate these measures in comparison to an inventory turnover ratio of 12.0 during the year ended December 31, 2011.

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Cash Accounts Receivable $10,005Accounts Payable 2,000 Wages Payable 500 Taxes Payable $1,500Cost of Goods Sold 300 Rent Expense 0 Wages Expense 6,500 3,030 15,985 Selling Expenses $8,900 1,100 2,000 110 0 1,400 Prepaid Rent 600 Contributed Capital De Income Tax Expense ciation nse 810 Retained Earnin Accumulated Depreciation 110Sales Revenue