Question
Question3 Presented below is the adjusted trial balance of Katie's Pet Supplies as at its fiscal year end, November 30, 2017. All accounts are their
Question3
Presented below is the adjusted trial balance of Katie's Pet Supplies as at its fiscal year end, November 30, 2017. All accounts are their normal balance (debit or credit). Katie's uses the periodic inventory system.
Accounts payable............................$ 32,310K. Milani, Capital.......................$119,480
Accounts receivable............................13,770K. Milani, Drawings...................12,000
Accum. depreciation, Building.61,200Long-term note receivable............................15,000
Accum. depreciation, equipment.........19,880Merchandise inventory..............34,360
Advertising expense..............................1,000Mortgage payable,..................106,000
Cash.....................................................7,500Prepaid Insurance....................4,500
Building.............................................175,000Property Tax expense...............3,500
Purchases.........................................634,700Salaries expense......................122,000
Depreciation Expense.........................14,000Salaries payable.......................8,500
Equipment..........................................57,000Sales discounts........................8250
Freight-out expense..............................8,200Sales returns and allowances...9,845
Insurance expense...............................9,000Sales revenue..........................872,000
Interest expense...................................5,300Unearned Revenue..................3,000
Land.............................................85,000Utilities Expense.......................19,800
Freight in.......................................5,060Rent revenue.......................2,800
Purchase discount....................6,300Purchase return and Allowance13,315
Additional Information:
1.Katie's pet supplies uses periodic inventory
2.Physical count determined that the merchandise on hand at Nov 30, 2017 was $37,350.
3.On the Mortgage payable 8500 is due on March 31, 2018.
Instruction:
a.Prepare the multistep Income Statement, Statement of Owners Equity, and Classified Balance Sheet
b.Calculate the Inventory turnover and Liquidity ratio
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