Need help with Income Statement and Balance Sheet
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. $ 9,000 1,940 360 540 800 110 1,430 300 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payablo Salaries and Wages Payable Income Taxes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Depreciation Expense Income Tax Expense Office Expense 5,700 2,500 13,920 7,120 990 1,800 110 0 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 900 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 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c. Sold 1,800 coasters on account on 12/3 at a unit price of $1.00. d. Collected $810 from customers on account on 12/4. e Paid the supplier $1,300 cash on account on 12/18. f Paid employees $450 on 12/23, of which $240 related to work done in November and $210 was for wages up to December 22. g. Loaded 100 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 $180 of office expenses incurred in December on account. 1. The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to be recorded. 1. Wages for the period from December 23-31 are $100 and will be paid on January 15. k. The $540 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. The company incurred $700 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 General Journal Debit Credit 1 210 December 01 Inventory Accounts Payable 210 2 405 December 02 Inventory Accounts Payable 405 3 3 1,800 December 03 Accounts Receivable Sales Revenue 1,800 4 4 December 03 Cost of Goods Sold 750 Inventory 750 01 5 810 December 04 Cash Accounts Receivable 810 6 1,300 December 18 Accounts Payable Cash 1,300 7 240 December 23 Salaries and Wages Payable Salaries and Wages Expense Cash 210 450 8 December 31 No Journal Entry Required 9 December 31 180 Office Expenses Accounts Payable 180 10 8 December 31 Depreciation Expense Accumulated Depreciation-Equipment 00 8 11 December 31 100 Salaries and Wages Expense Salaries and Wages Payable 100 12 90 December 31 Rent Expense Prepaid Rent 90 13 700 December 31 Income Tax Expense Income Taxes Payable 700 14 December 31 No Journal Entry Required 15 December 31 No Journal Entry Required Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. However, you will need to calculate and enter the amount of the net income or loss for the year ended December 31. Adjusted COLLEGE COASTERS Income Statement For the Year Ended December 31 Revenues: $ 15,720 7,870 $ 7,850 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Rent Expense Salaries and Wages Expense Depreciation Expense Office Expenses Income Tax Expense Total Operating Expenses 1,080 2,110 118 1,480 700 $ 5,488 2,362 0 INet Income Use the dropdowns to select the accounts properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. However, you will need to enter the amount of the Equipment (Net of accumulated depreciation), Common stock and Retained earnings as of December 31. Show less Adjusted COLLEGE COASTERS Balance Sheet As of December 31 0 0 0 0 0 0 0 0 0 0 0 $ FA $ 0 $ 0 w Calculate the inventory turnover ratio and days to sell, assuming that inventory was $360 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 times per year days
