The Artisan Wines is a retail store selling vintage wines. On December 31, 20X1, the firm's general ledger contained the accounts and balances below. All account balances are normal. Account Name Trial Balance Debit Artisan Wines Worksheet Year Ended December 31, 20x1 Adjustments Credit Debit Credit Adjusted Trial Balance Debit Credit Incose Statement Debit Balance Sheet Credit Cash Accounts Receivable $ 29,086.00 570.00 $ 29,086.00 Debit $ 29,086.00 Credit 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 Store Equipment 28,500.00 12,700.00 28,500.00 12,700.00 28,500.00 Accumulated Depreciation-Store 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 Depreciation- Office Equipment 1,570.00 1,070.00 2,640.00 2,640.00 Notes Payable, due 20x2 23,500.00 23,500.00 3,405.00 3.405.00 Accounts Payable Wages Payable. Social Security Tax Payable Medicare Tax Payable 640.00 39.68 9.28 Unearned Seminar rees 8,100.00 5,400.00 Interest Payable 117.50 Vincent Arroyo, Capital 31,230.00 640.00 39.68 9.28 2,700.00 117.50 31.230.00 23,500.00 3,405.00 640.00 39.68 9.28 2,700.00 117.50 31,230.00 Vincent Arroyo, Drawing Income Summary 14.810.00 15,700.00 12,700.00 14,810.00 15,700.00 14,810.00 Sales 160,970.00 12,700.00 160,970.00 15,700.00 12,700.00 160,970.00 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 1,070.00 Allowances 1,070.00 Freight In 295.00 Rent Expense 13,900.00 295.00 13,900.00 295.00 13,900.00 1,070.00 Wages Expense 24,700.00 Payroll Taxes Expense 4,024.00 640.00 45.90 25,340.00 25,340.00 4.072.96 4,072.96 Depreciation Expense-Store Equipment 3,300.00 3,300.00 Depreciation Expense-Office Equipment Advertising Expense 1,070.00 1,070.00 300.00 Supplies Expense Interest Expense Totals Net Income 220.00 235.00 337.50 300.00 235.00 117.50 5 233,545.00 $233,545.00 $ 39,468.40 5 39,468.40 $ 251,378.40 5 251,378.40 $ 159,277.40 $ 180,140.00 $ 92,101.00 8 71,238.40 20,819.54 20,819.54 $ 180,140.00 $180,140.00 $92,101.00 $ 92,101.00 3,300.00 1,070.00 300.00 235.00 337.50 Required: 1. Prepare a classified income statement for the year ended December 31, 20X1. The company does not classify its operating expenses as selling expenses and general and administrative expenses. 2. Prepare a statement of owner's equity for the year ended December 31, 20X1. No additional investments were made during the year. 3. Prepare a classified balance sheet as of December 31, 20X1. Analyze: What is the inventory turnover for Artisan Wines?