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

	ASSETS
101	Cash
122	Accounts Receivable
131	Merchandise Inventory
135	Estimated Returns Inventory
141	Office Supplies
145	Prepaid Insurance
181	Store Equipment
181.1	Accumulated Depreciation-Store Equipment

	LIABILITIES
201	Notes Payable
202	Accounts Payable
203	Customer Refunds Payable
219	Wages Payable
231	Sales Tax Payable
241	Unearned Show Revenue
242	Long-Term Note Payable

	EQUITY
311	Dominique Fouque, Capital
312	Dominique Fouque, Drawing
313	Income Summary

	REVENUE
401	Sales
401.1	Sales Returns and Allowances
412	Show Revenue

	EXPENSES
501	Purchases
501.1	Purchases Returns and Allowances
501.2	Purchases Discounts
502	Freight-In
511	Wages Expense
512	Advertising Expense
521	Rent Expense
523	Office Supplies Expense
525	Phone Expense
533	Utilities Expense
535	Insurance Expense
542	Depreciation Expense-Store Equipment
549	Miscellaneous Expense
551	Interest Expense

Amount Descriptions

Cost of goods purchased

Cost of goods sold

Decrease in capital

Dominique Fouque, capital

Dominique Fouque, capital, January 1, 20-3

Dominique Fouque, capital, December 31, 20-3

Goods available for sale

Gross profitIncome from operations

Increase in capital

Merchandise inventory, December 31, 20-3

Merchandise inventory, January 1, 20-3

Net incomeNet lossNet purchases

Net salesTotal assets

Total current assets

Total current liabilities

Total investment

Total liabilities

Total liabilities and owners equity

Total operating expenses

Withdrawals for the year

Dominique's Doll House Statement of Owner's Equity For Year Ended December 31, 20-3 1 2 3 4 5 Dominique's Doll House Balance Sheet December 31, 20-3 1 Assets 2 Current assets: 3 4 5 6 7 8 9 10 Property, plant, and equipment: 11 12 13 14 Liabilities Balance Sheet 11 12 13 14 Liabilities 15 Current liabilities: 16 17 18 19 20 21 22 23 Long-term liabilities: 24 25 26 Owner's equity 27 28 4. Compute the following measures of performance and financial condition for 20-3: Additional Instructions (a) Current ratio to 1 (b) Quick ratio to 1 (c) Working capital $ (d) Return on owner's equity % (e) Accounts receivable turnover Average number of days to collect receivables days (1) Inventory turnover Average number of days to sell inventory days PAUL GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Adjusting Entries 3 4 5 6 8 9 10 GENERAL LEDGER Account: Income Summary Account No. 313 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 2 3 4 5 6 7 Dominique's Doll House Income Statement For Year Ended December 31, 20-3 1 Revenue from sales: 2 3 4 5 Cost of goods sold: 6 7 8 9 10 Dominique's Doll House Statement of Owner's Equity For Year Ended December 31, 20-3 1 2 3 4 5 Dominique's Doll House Balance Sheet December 31, 20-3 1 Assets 2 Current assets: 3 4 5 6 7 8 9 10 Property, plant, and equipment: 11 12 13 14 Liabilities Balance Sheet 11 12 13 14 Liabilities 15 Current liabilities: 16 17 18 19 20 21 22 23 Long-term liabilities: 24 25 26 Owner's equity 27 28 4. Compute the following measures of performance and financial condition for 20-3: Additional Instructions (a) Current ratio to 1 (b) Quick ratio to 1 (c) Working capital $ (d) Return on owner's equity % (e) Accounts receivable turnover Average number of days to collect receivables days (1) Inventory turnover Average number of days to sell inventory days PAUL GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Adjusting Entries 3 4 5 6 8 9 10 GENERAL LEDGER Account: Income Summary Account No. 313 BALANCE DATE ITEM POST. REF. DEBIT CREDIT DEBIT CREDIT 1 2 3 4 5 6 7 Dominique's Doll House Income Statement For Year Ended December 31, 20-3 1 Revenue from sales: 2 3 4 5 Cost of goods sold: 6 7 8 9 10