N oints College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 8,400 Accounts Receivable 1,760 Inventory 400 Prepaid Rent 480 Equipment 690 Accumulated Depreciation 90 Accounts Payable 1,310 Salaries and Wages Payable 300 Income Taxes Payable Common Stock 5,700 Retained Earnings 3,000 Sales Revenue 14,020 Cost of Goods Sold 8,720 Rent Expense 880 Salaries and Wages Expense Depreciation Expense 1,700 90 Income Tax Expense Office Expense 1,300 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. a. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60. b. Purchased 1,000 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c. Sold 2,000 coasters on account on 12/3 at a unit price of $1.00. d. Collected $940 from customers on account on 12/4. e. Paid the supplier $1,330 cash on account on 12/18. f. Paid employees $500 on 12/23, of which $260 related to work done in November and $240 was for wages up to December 22. g. Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31: h. College Coasters has not yet recorded $170 of office expenses incurred in December on account. i. The company estimates that the equipment depreciates at a rate of $10 per month. One month of depreciation needs to be recorded. j. Wages for the period from December 23-31 are $100 and will be paid on January 15. k. The $480 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. The company incurred $800 of income tax but has made no tax payments this year. m. No shrinkage or damage was discovered when the inventory was counted on December 31. n. The company did not declare dividends and there were no transactions involving common stock. . No Date 1 December 01 Inventory Accounts Payable 2 December 02 Inventory Accounts Payable General Journal 3 December 03 Accounts Receivable Sales Revenue 4 December 03 Cost of Goods Sold Inventory 5 December 04 Cash Accounts Receivable 8 December 18 Accounts Payable Cash 7 December 23 Salaries and Wages Expense Salaries and Wages Payable Cash 8 December 31 No Journal Entry Required 9 December 31 Office Expenses Accounts Payable 10 December 31 Depreciation Expense Accumulated Depreciation-Equipment 11 December 31 Salaries and Wages Expense Salaries and Wages Payable 12 December 31 Rent Expense Prepaid Rent 13 December 31 Income Tax Expense Income Taxes Payable 14 December 31 No Journal Entry Required > > >> Debit 210- Credit 210 450- 450 2,000 2,000 > > 860 * 860 x 940- 940- >> 1,330 1,330 00 260 x 240x 500 > > > > > > 170- 170 10- 10 100 - 100 80- 80 800- 800- Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown then populate the balances in those accounts from the trial balance. However, you will need to calculate and enter of the net income or loss for the year ended December 31. Adjusted Revenues: COLLEGE COASTERS Income Statement For the Year Ended December 31 Sales Revenue Cost of Goods Sold Gross Profit 16.020 9.580 6.440 Operating Expenses: Rent Expense 900 Salaries and Wages Expense 2.000 Depreciation Expense 100 Office Expenses 1,470 0 Total Operating Expenses Income before Income Tax Expense Income Tax Expense 4.500 1,850 0 800 Net Income S 1,050 balances will appear for each account, based on your selection. However, you (Net of accumulated depreciation), Common stock and Retained earnings as Adjusted Assets Current Assets Cash COLLEGE COASTERS Balance Sheet As of December 31 Accounts Receivable Inventory Prepaid Rent Total Current Assets Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Income Taxes Payable Total Current Liabilities Stockholders' Equity 7,510 2,820 200 400 10,930 10,930 810 160 800 S 1,770 Common Stock 5,700 Retained Earnings 4,050 x Total Stockholders' Equity S 9.750 Total Liabilities and Stockholders' Equity S 11,520 Requirement Answer is not complete. General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Calculate the inventory turnover ratio and days to sell, assuming that inventory was $400 on January 1 of this year. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) Inventory Turnover Ratio Days to Sell 31.9 times per year 11.4 days < Balance Sheet Analysis