40 1.400 300 e College Coasters is a San Diego-based merchandiser specializing in logo-adomed drink coasters. The company reported the following balances in its unadjusted trial balance at December 1 Cash $9.600 Accounts Receivable Inventory See Prepaid Rent Equipment Accumulated Depreciation 110 Accounts Payable Salaries and wages Payable Income Taxes Payable Common Stock 5.000 Retained Earnings 2,600 Sales Revenue 15,310 Cost of Goods Sold 8,200 Rent Expense Salaries and Wages Expense 2.000 Depreciation Expense 110 Income Tax Expense Office Expense 1,200 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 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, the company entered into the following transactions. Some of these transactions are explained in greater detail below a. Purchased 400 coasters on account from the regular supplier on 1211 at a unit cost of $0.52, with terms of n/60 b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $055, with terms of n/60. c Sold 1600 coasters on account on 12/3 at a unit price of $110 d. Collected $990 from customers on account on 12/4. e Paid the supplier $1,410 cash on account on 12/18 Paid employees $470 on 12/23, of which $290 related to work done in November and $180 was for wages up to December 22 9. Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 1231 h. College Coasters has not yet recorded 160 of office expenses incurred in December on account The company estimates that the equipment depreciates at a rate of $9 per month One month of depreciation needs to be recorded Wages for the period from December 23-31 are $100 and will be paid on January 15 k. The $480 of Prepaid Rent relates to a six-month period ending on May 31 of next year The company incurred $700 of income tax but has made no tax payments this year m. No shrinkage or damage was discovered when the inventory was counted on December 31 n. The company did not declare dividends and there were no transactions involving common stock Statement Balance Sheet Requirement General General Income Journal Ledger Trial Balance Analysis General Journal tab - Prepare the journal entries to record the transactions (a) through (n). Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger. Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop- down, Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on your selection. Balance Sheet tab - Use the drop down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Analysis tab - Calculate to one decimal place the inventory turnover ratio and days to sell in 'Analysis Tab. 2 December 02 495 Inventory Accounts Payable 495 3 December 03 1.760 Accounts Receivable Sales Revenue 1,760 4 December 03 Cost of Goods Sold 1,035 >> Inventory 1,035 X 5 December 04 Cash 990 Accounts Receivable 990 6 December 18 Accounts Payable 1.410 Cash 1.410 7 December 23 180 > Salaries and Wages Expense Salaries and Wages Payable Cash 290 00 470 8 December 31 No Joumal Entry Required > 9 December 31 160 Office Expenses Accounts Payable O 160 10 December 31 9 Depreciation Expense Accumulated Depreciation Equipment 0 9 11 December 31 100 > Salaries and Wages Expense Salarios and Wages Payable 100 12 December 31 80 Rent Expense Prepaid Rent 10 80 13 December 31 700 Income Tax Expense Income Taxes Payable >> 700 14 December 31 No Journal Entry Required > 15 December 31 No Journal Entry Required Answer is complete but not entirely correct. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdow then populate the balances in those accounts from the trial balance. However, you will need to calculate and enter of the net income or loss for the year ended December 31. Adjusted COLLEGE COASTERS Income Statement For the Year Ended December 31 Revenues Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Office Expenses Rent Expense Salaries and Wages Expense Depreciation Expense 17 140 9,315 7,825 $ > 1.360 960 2,280 119 0 $ Total Operating Expenses Income before Income Tax Expense Income Tax Expense Net Income 4,719 3,106 700 2,406 $ Answer is complete but not entirely correct. General General Income Trial Balance Requirement Analysis Balance Sheet Journal Ledger Statement Use the dropdowns to select the accounts properly included on the balance sheet. The unadjusted, adjusted, or balances will appear for each account, based on your selection. However, you will need to enter the amount of te (Net of accumulated depreciation), Common stock and Retained earnings as of December 31. Adjusted COLLEGE COASTERS Balance Sheet As of December 31 Assets Current Assets Cash 8.710 Accounts Receivable 2.690 Inventory 180 Prepaid Rent 400 Total Current Assets 11.980 Accumulated Depreciation Equipment 510 Total Assets 12.490 Liabilities Current Liabilities Accounts Payable 865 Salaries and Wages Payable 110 Income Taxes Payable 700 Total Current Liabilities 1,675 Stockholders' Equity Common Stock 5,800 Retained Earnings 2,600 Total Stockholders' Equity $ 8,400 Total Liabilities and Stockholders' Equity 10,075 OOOOOO > OOOOO $ Income Statement Analysis > Answer is complete but not entirely correct. General Requirement General Income Trial Balance Journal Ledger Statement Balance Sheet Analysis Calculate the inventory turnover ratio and days to sell, assuming that inventory was $500 on January 1 of this year. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) Inventory Turnover 273 times per year Ratio Days to Sell 134 days