Merchandising Operations 31A 466 Making closing entries, preparing financial statements, and computing gross profit percentage, inventory turnover, and days in inventory [20-30 min] The adjusted trial balance of Big Papi Music Company at June 30, 2012, follows: nq eaong grill BIG PAPI MUSIC COMPANY Adjusted Trial Balance June 30, 2012 2010 ABC-89 Account 12 11 Debit Credit absonen edT Cash $ 3,600 baseup Accounts receivable 38,800 Inventory 17,200 Supplies 200 Furniture 40,000 Accumulated depreciation 8,400 Accounts payable 13,300 Salary payable 1,200 Unearned sales revenue 6,700 Note payable, long-term 15,000 [16 The Papi, capital 36,000 Papi, drawing 40,500 Sales revenue 180,000 Sales returns 5,000 Cost of goods sold 82,500 Selling expense 19,200 General expense 12,000 Interest expense Total 1,600 $ 260,600 $ 260,600 irements-01 1. Journalize Big Papi's closing entries.ne 2. Prepare Big Papi's single-step income statement for the year. (aquono) amela 0086-89 dahiano 3. Compute the gross profit percentage, the rate of inventory turnover, and the days in inventory for the fiscal year ending June 30, 2012. Inventory on hand one year ago, at June 30, 2011, was $12,200. 4. For the year ended June 30, 2011, Big Papi's gross profit percentage was 50%, and inventory turnover was 4.9 times. Did the results for the year ended June 30, 2012, suggest improvement or deterioration in profitability over last year?