Dominique Fouque owns and operates Dominique$$s Doll House. She has a small shop in which she sells new and antique dolls. She is particularly well known for her collection of antique Ken and Barbie dolls. A completed spreadsheet for $20-3$ is shown below. Fouque made no additional investments during the year and the long$-$term note payable is due in $20-9.$ No portion of the long$-$term note is due within the next year. Net credit sales for $20-3$ were $$38,000,$ and receivables on January $1$ were $$3,000.$

Dominique$$s 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

$16,700\mathrm{.}00$

$16,700\mathrm{.}00$

$4$

Accounts Receivable

$3,200\mathrm{.}00$

$3,200\mathrm{.}00$

$5$

Merchandise Inventory

$31,300\mathrm{.}00$

$($b$)28,000\mathrm{.}00$

$($a$)31,300\mathrm{.}00$

$28,000\mathrm{.}00$

$6$

Estimated Returns Inventory

$1,000\mathrm{.}00$

$($e$)1,100\mathrm{.}00$

$($d$)1,000\mathrm{.}00$

$1,100\mathrm{.}00$

$7$

Office Supplies

$800\mathrm{.}00$

$($f$)600\mathrm{.}00$

$200\mathrm{.}00$

$8$

Prepaid Insurance

$1,200\mathrm{.}00$

$($g$)400\mathrm{.}00$

$800\mathrm{.}00$

$9$

Store Equipment

$95,000\mathrm{.}00$

$95,000\mathrm{.}00$

$10$

Accumulated Depreciation$-$Store Equipment

$15,000\mathrm{.}00$

$($h$)5,000\mathrm{.}00$

$20,000\mathrm{.}00$

$11$

Notes Payable

$6,000\mathrm{.}00$

$6,000\mathrm{.}00$

$12$

Accounts Payable

$5,500\mathrm{.}00$

$5,500\mathrm{.}00$

$13$

Customer Refunds Payable

$1,500\mathrm{.}00$

$($c$)200\mathrm{.}00$

$1,700\mathrm{.}00$

$14$

Wages Payable

$($i$)200\mathrm{.}00$

$200\mathrm{.}00$

$15$

Sales Tax Payable

$850\mathrm{.}00$

$850\mathrm{.}00$

$16$

Unearned Show Revenue

$1,000\mathrm{.}00$

$($j$)700\mathrm{.}00$

$300\mathrm{.}00$

$17$

Long$-$Term Note Payable

$10,000\mathrm{.}00$

$10,000\mathrm{.}00$

$18$

Dominique Fouque, Capital

$95,800\mathrm{.}00$

$95,800\mathrm{.}00$

$19$

Dominique Fouque, Drawing

$21,000\mathrm{.}00$

$21,000\mathrm{.}00$

$20$

Income Summary

$($a$)31,300\mathrm{.}00$

$($b$)28,000\mathrm{.}00$

$31,300\mathrm{.}00$

$28,000\mathrm{.}00$

$21$

$($d$)1,000\mathrm{.}00$

$($e$)1,100\mathrm{.}00$

$1,000\mathrm{.}00$

$1,100\mathrm{.}00$

$22$

Sales

$201,500\mathrm{.}00$

$201,500\mathrm{.}00$

$23$

Sales Returns and Allowances

$5,900\mathrm{.}00$

$($c$)200\mathrm{.}00$

$6,100\mathrm{.}00$

$24$

Show Revenue

$5,000\mathrm{.}00$

$($j$)700\mathrm{.}00$

$5,700\mathrm{.}00$

$25$

Purchases

$72,000\mathrm{.}00$

$72,000\mathrm{.}00$

$26$

Purchases Returns and Allowances

$750\mathrm{.}00$

$750\mathrm{.}00$

$27$

Freight$-$In

$1,200\mathrm{.}00$

$1,200\mathrm{.}00$

$28$

Wages Expense

$42,000\mathrm{.}00$

$($i$)200\mathrm{.}00$

$42,200\mathrm{.}00$

$29$

Rent Expense

$42,000\mathrm{.}00$

$42,000\mathrm{.}00$

$30$

Office Supplies Expense

$($f$)600\mathrm{.}00$

$600\mathrm{.}00$

$31$

Phone Expense

$1,500\mathrm{.}00$

$1,500\mathrm{.}00$

$32$

Utilities Expense

$7,600\mathrm{.}00$

$7,600\mathrm{.}00$

$33$

Insurance Expense

$($g$)400\mathrm{.}00$

$400\mathrm{.}00$

$34$

Depreciation Expense$-$Store Equipment

$($h$)5,000\mathrm{.}00$

$5,000\mathrm{.}00$

$35$

Interest Expense

$500\mathrm{.}00$

$500\mathrm{.}00$

$36$

$$342,900\mathrm{.}00$

$$342,900\mathrm{.}00$

$$68,500\mathrm{.}00$

$$68,500\mathrm{.}00$

$$377,400\mathrm{.}00$

$$377,400\mathrm{.}00$

$37$

$211,400\mathrm{.}00$

$237,050\mathrm{.}00$

$38$

Net Income

$$25,650\mathrm{.}00$

Required:

$1.$ Prepare a multiple$-$step income statement.

$2.$ Prepare a statement of owner$$s 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 owner$$s 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.