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 on page 610below. 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.

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 and indicate which should be reversed and why.

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.

*Must be done on excel!

Dominique's Doll House End-of-Period Spreadsheet For the Year Ended December 31, 20-3 TRIAL BALANCE ADJUSTMENTS ADJUSTED TRIAL BALANCE ACCOUNT TITLE DEBIT CREDIT DEENT CREDIT DEBIT CREDIT Cash 16,700.00 16,700.00 Accounts Receivable 3,200.00 3,200.00 Merchandise Inventory 31,300.00 (b) 28,000.00 (a) 31 300.00 28,000.00 9 Estimated Returns Inventory 1,000.00 (e) 1,100.00 (d) 1,000.00 1,100.00 10 Office Supplies 800.00 (0 600.00 200.00 11 Prepaid Insurance 1,200.00 (9) 400.00 800.00 12 Store Equipment 95,000.00 95,000.00 13 Accum. Depr.-Store Equipment 15,000.00 (h) 5,000.00 20,000.00 14 Notes Payable 6,000.00 6,000.00 15 Accounts Payable 5.500.00 5,500.00 16 Customer Refunds Payable 1,500.00 200.00 1,700.00 17 Wages Payable 200.00 200.00 18 Sales Tax Payable 850.00 850.00 19 Unearned Show Revenue 1,000.00 700.00 300.00 20 Long-term Note Payable 10,000.00 10,000.00 21 Dominique Fouque, Capital 95,800.00 95,800.00 22 Dominique Fouque, Drawing 21,000.00 21,000.00 23 Income Summary (a) 31 300.00 (b) 28,000.00 31,300.00 28,000.00 24 (d) 1,000.00 (e) 1,100.00 1,000.00 1,100.00 25 Sales 201,500.00 201,500.00 26 Sales Returns and Allowances 5,900.00 (c) 200.00 6,100.00 27 Show Revenue 5,000.00 700.00 5,700.00 28 Purchases 72,000.00 72,000.00 29 Purchases Returns and Allowances 750.00 750.00 30 Freight-In 1,200.00 1,200.00 31 Wages Expense 42,000.00 200.00 42,200.00 32 Rent Expense 42,000.00 42,000.00 33 Office Supplies Expense (f) 600.00 600.00 34 Phone Expense 1,500.00 1,500.00 35 Utilities Expense 7,600.00 7,600.00 36 Insurance Expense (g) 400.00 400.00 37 Depr. Expense-Store Equipment (h) 5,000.00 5,000.00 38 Interest Expense 500.00 500.00 39 342 900.00 342,900.00 68,500.00 68,500.00 377,400.00 377,400.00 40 211,400.00 237,050.00 41 Net Income 25,650.00