Please explain how you got your answers. Thank you.
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 Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable 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 Expenses $ 8,600 1,800 320 660 950 90 1,250 300 0 5,200 2,700 14,940 7,650 1,210 1,900 90 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 800 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 1,700 coasters on account on 12/3 at a unit price of $1.00. d. Collected $860 from customers on account on 12/4. e. Paid the supplier $1,570 cash on account on 12/18. f. Paid employees $470 on 12/23, of which $260 related to work done in November and $210 was for wages up to December 22. g. Loaded 80 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 $190 of office expenses incurred in December on account. i. The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to be recorded j. Wages for the period from December 2331 are $100 and will be paid on January 15. k. The $660 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. Requirement General Journal General Ledger Trial Balance Income Statement Bal Prepare the journal entries to record the transactions (a) through (n). Revi Balance tabs. (If no entry is required for a transaction/event, select "No jo View transaction list View journal entry worksheet X 1 Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60. Record the transaction. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. Record the transaction. 3 Sold 1,700 coasters on account on 12/3 at a unit price of $1. Record the transaction. Record the cost of goods sold. 5 Collected $860 from customers on account on 12/4. Record the transaction. Requirement General Journal General Ledger Trial Balance Income Statement Bal Prepare the journal entries to record the transactions (a) through (n). Revi Balance tabs. (If no entry is required for a transaction/event, select "No jo View transaction list View journal entry worksheet X 6 Paid the supplier $1,570 cash on account on 12/18. Record the transaction. Paid employees $470 on 12/23, of which $260 related to work done in November and $210 was for wages up to December 22. Record the transaction. * Loaded 80 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. Record the transaction. 9 College Coasters has not yet recorded $190 of office expenses incurred in December on account. Record the transaction. General General Requirement Income Trial Balance Journal Ba Ledger Statement Prepare the journal entries to record the transactions (a) through (n). Rev Balance tabs. (If no entry is required for a transaction/event, select "No jo View transaction list View journal entry worksheet x 10 The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to be recorded. Record the transaction. Wages for the period from December 23-31 are $100 and will be paid on January 15. Record the transaction. 12 The $660 of Prepaid Rent relates to a six-month period ending on May 31 of next year. Record the transaction. 13 The company incurred $700 of income tax but has made no tax payments this year. Record the transaction. 14 No shrinkage or damage was discovered when the inventory was counted on December 31. Record the 15 The company did not declare dividends and there were no transactions involving common stock. Record the transaction. 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 $ 0 0 0 0 0 0 0 0 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis 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. Adjusted COLLEGE COASTERS Balance Sheet As of December 31 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Calculate the inventory turnover ratio and days to sell, assuming that inventory was $320 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
