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Dominique Fouque owns and operates Dominique s Doll House. She has a small shop in which she sells new and antique dolls. She is particularly

Dominique Fouque owns and operates Dominiques Doll House. She has a small shop in which she sells new and antique dolls. She is particularly well known for her collection of antique Ken and Barbie dolls. A completed spreadsheet for 20-3 is shown below. Fouque made no additional investments during the year and the long-term note payable is due in 20-9. No portion of the long-term note is due within the next year. Net credit sales for 20-3 were $38,000, and receivables on January 1 were $3,000.
Dominiques Doll House
End-of-Period Spreadsheet
For Year Ended December 31,20-3
1
TRIAL BALANCE
TRIAL BALANCE
ADJUSTMENTS
ADJUSTMENTS
ADJUSTED TRIAL BALANCE
ADJUSTED TRIAL BALANCE
2
ACCOUNT TITLE
DEBIT
CREDIT
DEBIT
CREDIT
DEBIT
CREDIT
3
Cash
16,700.00
16,700.00
4
Accounts Receivable
3,200.00
3,200.00
5
Merchandise Inventory
31,300.00
(b)28,000.00
(a)31,300.00
28,000.00
6
Estimated Returns Inventory
1,000.00
(e)1,100.00
(d)1,000.00
1,100.00
7
Office Supplies
800.00
(f)600.00
200.00
8
Prepaid Insurance
1,200.00
(g)400.00
800.00
9
Store Equipment
95,000.00
95,000.00
10
Accumulated Depreciation-Store Equipment
15,000.00
(h)5,000.00
20,000.00
11
Notes Payable
6,000.00
6,000.00
12
Accounts Payable
5,500.00
5,500.00
13
Customer Refunds Payable
1,500.00
(c)200.00
1,700.00
14
Wages Payable
(i)200.00
200.00
15
Sales Tax Payable
850.00
850.00
16
Unearned Show Revenue
1,000.00
(j)700.00
300.00
17
Long-Term Note Payable
10,000.00
10,000.00
18
Dominique Fouque, Capital
95,800.00
95,800.00
19
Dominique Fouque, Drawing
21,000.00
21,000.00
20
Income Summary
(a)31,300.00
(b)28,000.00
31,300.00
28,000.00
21
(d)1,000.00
(e)1,100.00
1,000.00
1,100.00
22
Sales
201,500.00
201,500.00
23
Sales Returns and Allowances
5,900.00
(c)200.00
6,100.00
24
Show Revenue
5,000.00
(j)700.00
5,700.00
25
Purchases
72,000.00
72,000.00
26
Purchases Returns and Allowances
750.00
750.00
27
Freight-In
1,200.00
1,200.00
28
Wages Expense
42,000.00
(i)200.00
42,200.00
29
Rent Expense
42,000.00
42,000.00
30
Office Supplies Expense
(f)600.00
600.00
31
Phone Expense
1,500.00
1,500.00
32
Utilities Expense
7,600.00
7,600.00
33
Insurance Expense
(g)400.00
400.00
34
Depreciation Expense-Store Equipment
(h)5,000.00
5,000.00
35
Interest Expense
500.00
500.00
36
$342,900.00
$342,900.00
$68,500.00
$68,500.00
$377,400.00
$377,400.00
37
211,400.00
237,050.00
38
Net Income
$25,650.00
Required:
1. Prepare a multiple-step income statement.
2. Prepare a statement of owners equity.
3. Prepare a balance sheet.
4. Compute the following measures of performance and financial condition for 20-3:
(a) Current ratio
(b) Quick ratio
(c) Working capital
(d) Return on owners equity
(e) Accounts receivable turnover and average number of days required to collect receivables
(f) Inventory turnover and the average number of days required to sell inventory
5. Prepare adjusting entries.
6. Open an Income Summary account. Post adjusting and closing entries ( prepared in 7) to this account.
7. Prepare closing entries.
8. Prepare reversing entries for the adjustments where appropriate.

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