a. Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 540 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below:

Debit

Credit

Cash

$

1,570

Accounts receivable

2,220

Interest receivable

270

Prepaid insurance

1,710

Notes receivable (long-term)

2,880

Equipment

15,500

Accumulated depreciation

$

2,970

Accounts payable

2,230

Accrued expenses payable

3,740

Income taxes payable

2,650

Unearned rent revenue

330

Common Stock (820 shares)

82

Additional paid-in capital

3,508

Retained earnings

5,080

Sales revenue

37,250

Interest revenue

160

Rent revenue

560

Wages expense

19,000

Depreciation expense

1,750

Utilities expense

320

Insurance expense

780

Rent expense

9,800

Income tax expense

2,760

Total

$

58,560

$

58,560

Prepare a multi-step income statement in good form for the current year. Include earnings per share. (Round your earnings per share to 2 decimal places. )

b.

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 510 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Debit

Credit

Cash

$

1,500

Accounts receivable

2,320

Interest receivable

220

Prepaid insurance

1,670

Notes receivable (long-term)

2,870

Equipment

15,700

Accumulated depreciation

$

3,030

Accounts payable

2,330

Accrued expenses payable

3,850

Income taxes payable

2,530

Unearned rent revenue

420

Common Stock (840 shares)

84

Additional paid-in capital

3,566

Retained earnings

4,080

Sales revenue

37,720

Interest revenue

160

Rent revenue

830

Wages expense

20,200

Depreciation expense

1,770

Utilities expense

300

Insurance expense

660

Rent expense

8,700

Income tax expense

2,690

Total

$

58,600

$

58,600

Prepare the closing entry at the end of the current year.

c.

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 500 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below:

	Debit				Credit
Cash	$	1,500
Accounts receivable		2,200
Interest receivable		100
Prepaid insurance		1,600
Notes receivable (long-term)		2,800
Equipment		15,290
Accumulated depreciation				$	3,000
Accounts payable					2,400
Accrued expenses payable					3,920
Income taxes payable					2,700
Unearned rent revenue					500
Common Stock (800 shares)					80
Additional paid-in capital					3,620
Retained earnings					2,000
Sales revenue					38,500
Interest revenue					100
Rent revenue					800
Wages expense		19,500
Depreciation expense		1,800
Utilities expense		380
Insurance expense		750
Rent expense		9,000
Income tax expense		2,700
Total	$	57,620		$	57,620
Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $16,050.

ROMNEY'S MARKETING COMPANY Income Statement For the current year Operating revenues Sales revenue Total operating revenues Operating expenses Wages expense Depreciation expense Utilities expense Insurance expense Rent expense Total operating expenses Other items Interest revenue Rent revenue Net income Earnings per share