Chart of Accounts ASSETS Cash 122 Accounts Receivable 131 Merchandise Inventory 135 Estimated Returns Inventory 141 Office Supplies CHART OF ACCOUNTS Dominique's Doll House General Ledger REVENUE 401 Sales 401.1 Sales Returns and Allowances 412 Show Revenue 145 Prepaid Insurance 181 Store Equipment 181.1 Accumulated Depreciation-Store Equipment EXPENSES 501 Purchases 501.1 Purchases Returns and Allowances 501.2 Purchases Discounts LIABILITIES 201 Notes Payable 202 Accounts Payable 203 Customer Refunds Payable 219 Wages Payable 231 Sales Tax Payable 241 Unearned Show Revenue 242 Long-Term Note Payable 502 Freight-In 511 512 Wages Expense Advertising Expense 521 Rent Expense 523 Office Supplies Expense 525 Phone Expense 533 Utilities Expense 535 Insurance Expense 542 Depreciation Expense-Store Equipment 549 Miscellaneous Expense EQUITY 311 Dominique Fouque, Capital 312 Dominique Fouque, Drawing 313 Income Summary 551 Interest Expense Amount Descriptions Amount Descriptions Cost of goods purchased Cost of goods sold Decrease in capital Dominique Fouque, capital Dominique Fouque, capital, January 1, 20-3 Dominique Fouque, capital, December 31, 20-3 Goods available for sale Gross profit Income from operations Increase in capital Merchandise inventory, December 31, 20-3 Merchandise inventory, January 1, 20-3 Net income Net loss Net purchases Net sales Total assets Total current assets Total current liabilities Total investment Total liabilities Total liabilities and owner's equity Total operating expenses withdrawals for the year General Journal 5. Prepare adjusting entries. General Journal Instructions GENERAL JOURNAL DATE 1 ACCOUNT TITLE Adjusting Entries 2 3 PAGE 1 POST. REF. DEBIT CREDIT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 7. Prepare closing entries. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Closing Entries 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 8. Prepare reversing entries for the adjustments where appropriate. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Reversing Entries 2 3 General Ledger 6. Post adjusting and closing entries to Income Summary. General Ledger Instructions PAGE 2 POST. REF. DEBIT CREDIT PAGE 1 POST. REF. DEBIT CREDIT Account: Income Summary Income Statement 1. Prepare a multiple-step income statement. Income Statement Instructions 1 Revenue from sales: 2 3 4 5 Cost of goods sold: 6 7 9 10 11 12 13 14 15 16 17 18 Operating expenses: 19 20 21 22 23 24 25 26 27 23 Other revenues: 29 30 Other expenses: 31 32 Statement of Owner's Equity 2. Prepare a statement of owner's equity. Statement of Owner's Equity Instructions GENERAL LEDGER Account No. 313 Dominique's Doll House Income Statement For Year Ended December 31, 20-3 Dominique's Doll House Statement of Owner's Equity For Year Ended December 31, 20-3 1 Dominique Fouque, capital, January 1, 20-3 Net income Less Dominique Fouque, drawing Increase in capital Dominique Fouque, capital, December 31, 20-3 $95,800.00 $25,150.00 21,000.00 4,150.00 $100,950.00 Balance Sheet 3. Prepare a balance sheet. Balance Sheet Instructions 1 Assets 2 Current assets: 3 4 5 6 7 8 10 Property, plant, and equipment: 11 12 13 14 Liabilities 15 Current Liabilities: 16 17 18 19 20 21 22 23 24 25 Long-term liabilities: 26 Owner's equity 27 28 Financial Ratios Dominique's Doll House Balance Sheet December 31, 20-3 4. Compute the following measures of performance and financial condition for 20-3: Additional Instructions (a) Current ratio 2.7 to 1 (b) Quick ratio (c) Working capital 1.1 to 1 $31,450 (d) Return on owner's equity (e) Accounts receivable turnover 26.2% 26.2 Average number of days to collect receivables 29.1 days (f) Inventory turnover Average number of days to sell inventory 2.20 162.9 days