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.