Question
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
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. |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dominiques Doll House | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Amount DescriptionsCost of goods purchasedCost of goods soldDecrease in capitalDominique Fouque, capitalDominique Fouque, capital, January 1, 20-3Dominique Fouque, capital, December 31, 20-3Goods available for saleGross profitIncome from operationsIncrease in capitalMerchandise inventory, December 31, 20-3Merchandise inventory, January 1, 20-3Net incomeNet lossNet purchasesNet salesTotal assetsTotal current assetsTotal current liabilitiesTotal investmentTotal liabilitiesTotal liabilities and owners equityTotal operating expenseswithdrawals for the year
I will need help with general journal, general ledger, income statement, statement of OE, balance sheet, financial ratios. That is all I was given. I have no additional information. Thank you in advance! I do appreciate what you do.
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