complete income statement, balance sheet and analysis table.
College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Depreciation Expense Income Tax Expense office Expenses $ 8,400 1,640 320 540 890 90 1,340 300 0 5,700 3,000 12,440 7,300 990 1.600 90 0 2,100 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 800 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. 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 12/1 at a unit cost of $0.42, with terms of n/60 b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of 1/60 c. Sold 2.000 coasters on account on 12/3 at a unit price of $1.00. d. Collected $850 from customers on account on 1274 COLLEGE COASTERS Trial Balance December 31, 2021 Account Title Debit Credit $ 7,210 2,790 45 450 898 98 533 140 700 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Income Taxes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Depreciation Expense Office Expenses Rent Expense Salaries and Wages Expense Income Tax Expense Total 5,700 3,000 14,440 8,148 90 TL 1,260 1,080 1.940 700 24,611 $ $ 24,611 > COLLEGE COASTERS Balance Sheet As of December 31 Assets Current Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Income Taxes Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity OOOOOOO 7,210 2,790 45 450 10,495 800 11,295 533 140 700 1,373 $ 5,700 4,222 X 9,922 11,295 $ $ Other relevant information includes the following at 12/31: h. College Coasters has not yet recorded $160 of office expenses incurred in December on account 1. The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to be recorded. 1. Wages for the period from December 23-31 are $100 and will be paid on January 15. k. The $540 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. 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. Answer is complete but not entirely correct. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Calculate the inventory turnover ratio and days to sell, assuming that inventory was $320 on January 1 of this year. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) 22.8 times per year Inventory Turnover Ratio Days to Sell 16.0 days Balance Sheet Analysis
