The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firms general ledger contained the accounts and balances below. All account balances are normal.
Artisan Wines Worksheet Year Ended December 31, 2019 |
| | Trial Balance | | | Adjustments | | | Adjusted Trial Balance | | | Income Statement | | | Balance Sheet | | |
Account Name | | Debit | | | Credit | | | Debit | | | Credit | | | Debit | | | Credit | | | Debit | | | Credit | | | Debit | | | Credit | | |
Cash | $ | 29,086.00 | | | | | | | | | | | $ | 29,086.00 | | | | | | | | | | | $ | 29,086.00 | | | | | |
Accounts Receivable | | 570.00 | | | | | | | | | | | | 570.00 | | | | | | | | | | | | 570.00 | | | | | |
Prepaid Advertising | | 900.00 | | | | | | | | | 300.00 | | | 600.00 | | | | | | | | | | | | 600.00 | | | | | |
Supplies | | 370.00 | | | | | | | | | 235.00 | | | 135.00 | | | | | | | | | | | | 135.00 | | | | | |
Merchandise Inventory | | 15,700.00 | | | | | | 12,700.00 | | | 15,700.00 | | | 12,700.00 | | | | | | | | | | | | 12,700.00 | | | | | |
Store Equipment | | 28,500.00 | | | | | | | | | | | | 28,500.00 | | | | | | | | | | | | 28,500.00 | | | | | |
Accumulated DepreciationStore Equipment | | | | | 3,700.00 | | | | | | 3,300.00 | | | | | | 7,000.00 | | | | | | | | | | | | 7,000.00 | | |
Office Equipment | | 5,700.00 | | | | | | | | | | | | 5,700.00 | | | | | | | | | | | | 5,700.00 | | | | | |
Accumulated DepreciationOffice Equipment | | | | | 1,570.00 | | | | | | 1,070.00 | | | | | | 2,640.00 | | | | | | | | | | | | 2,640.00 | | |
Notes Payable, due 2020 | | | | | 23,500.00 | | | | | | | | | | | | 23,500.00 | | | | | | | | | | | | 23,500.00 | | |
Accounts Payable | | | | | 3,405.00 | | | | | | | | | | | | 3,405.00 | | | | | | | | | | | | 3,405.00 | | |
Wages Payable | | | | | | | | | | | 600.00 | | | | | | 600.00 | | | | | | | | | | | | 600.00 | | |
Social Security Tax Payable | | | | | | | | | | | 37.20 | | | | | | 37.20 | | | | | | | | | | | | 37.20 | | |
Medicare Tax Payable | | | | | | | | | | | 8.70 | | | | | | 8.70 | | | | | | | | | | | | 8.70 | | |
Unearned Seminar Fees | | | | | 8,100.00 | | | 5,400.00 | | | | | | | | | 2,700.00 | | | | | | | | | | | | 2,700.00 | | |
Interest Payable | | | | | | | | | | | 117.50 | | | | | | 117.50 | | | | | | | | | | | | 117.50 | | |
Vincent Arroyo, Capital | | | | | 31,230.00 | | | | | | | | | | | | 31,230.00 | | | | | | | | | | | | 31,230.00 | | |
Vincent Arroyo, Drawing | | 14,810.00 | | | | | | | | | | | | 14,810.00 | | | | | | | | | | | | 14,810.00 | | | | | |
Income Summary | | | | | | | | 15,700.00 | | | 12,700.00 | | | 15,700.00 | | | 12,700.00 | | | 15,700.00 | | | 12,700.00 | | | | | | | | |
Sales | | | | | 160,970.00 | | | | | | | | | | | | 160,970.00 | | | | | | 160,970.00 | | | | | | | | |
Sales Discounts | | 270.00 | | | | | | | | | | | | 270.00 | | | | | | 270.00 | | | | | | | | | | | |
Seminar Fee Income | | | | | | | | | | | 5,400.00 | | | | | | 5,400.00 | | | | | | 5,400.00 | | | | | | | | |
Purchases | | 94,500.00 | | | | | | | | | | | | 94,500.00 | | | | | | 94,500.00 | | | | | | | | | | | |
Purchases Returns and Allowances | | | | | 1,070.00 | | | | | | | | | | | | 1,070.00 | | | | | | 1,070.00 | | | | | | | | |
Freight In | | 295.00 | | | | | | | | | | | | 295.00 | | | | | | 295.00 | | | | | | | | | | | |
Rent Expense | | 13,900.00 | | | | | | | | | | | | 13,900.00 | | | | | | 13,900.00 | | | | | | | | | | | |
Wages Expense | | 24,700.00 | | | | | | 600.00 | | | | | | 25,300.00 | | | | | | 25,300.00 | | | | | | | | | | | |
Payroll Taxes Expense | | 4,024.00 | | | | | | 45.90 | | | | | | 4,069.90 | | | | | | 4,069.90 | | | | | | | | | | | |
Depreciation ExpenseStore Equipment | | | | | | | | 3,300.00 | | | | | | 3,300.00 | | | | | | 3,300.00 | | | | | | | | | | | |
Depreciation ExpenseOffice Equipment | | | | | | | | 1,070.00 | | | | | | 1,070.00 | | | | | | 1,070.00 | | | | | | | | | | | |
Advertising Expense | | | | | | | | 300.00 | | | | | | 300.00 | | | | | | 300.00 | | | | | | | | | | | |
Supplies Expense | | | | | | | | 235.00 | | | | | | 235.00 | | | | | | 235.00 | | | | | | | | | | | |
Interest Expense | | 220.00 | | | | | | 117.50 | | | | | | 337.50 | | | | | | 337.50 | | | | | | | | | | | |
Totals | $ | 233,545.00 | | $ | 233,545.00 | | $ | 39,468.40 | | $ | 39,468.40 | | $ | 251,378.40 | | $ | 251,378.40 | | $ | 159,277.40 | | $ | 180,140.00 | | $ | 92,101.00 | | $ | 71,238.40 | | |
Net Income | | | | | | | | | | | | | | | | | | | | 20,862.60 | | | | | | | | | 20,862.60 | | |
| | | | | | | | | | | | | | | | | | | $ | 180,140.00 | | $ | 180,140.00 | | $ | 92,101.00 | | $ | 92,101.00 | | |
Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses. (Round your answers to 2 decimal places.)
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| ARTISAN WINES | Income Statement | | Operating revenue | | | | | | | | | | | | Net sales | | | | Cost of goods sold | | | | Merchandise inventory, January 1, 2019 | | | | | | | | | | | | | | | | Delivered cost of purchases | $0.00 | | | | | | | Net delivered cost of purchases | | | | Goods available for sale | | 0.00 | | | | | | Cost of goods sold | | | | | | | $0.00 | Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total operating expenses | | | 0.00 | Income from operations | | | $0.00 | Other income | | | | | | | | | | | 0.00 | Other expenses | | | | | | | | | | | 0.00 | Net nonoperating income | | | 0.00 | | | | $0.00 | |
Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the year. (Round your answers to 2 decimal places.)
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| ARTISAN WINES | Statement of Owner's Equity | | | | | | | | | | | | | $0.00 | | | $0.00 | |
repare a classified balance sheet as of December 31, 2019. (Round your answers to 2 decimal places.)
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| ARTISAN WINES | Balance Sheet | | Assets | | | | Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total current assets | | | $0.00 | Plant and equipment: | | | | Store equipment | | | | | | | | Office equipment | | | | | | | | Total plant and equipment | | | 0.00 | Total assets | | | $0.00 | Liabilities and Owner's Equity | | | | Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total current liabilities | | | $0.00 | Owner's equity: | | | | | | | | | | | | Total liabilities and owner's equity | | | $0.00 | | | | |
What is the inventory turnover for Artisan Wines? (Round your answer to 2 decimal places.)