Question

Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem.
In Problem 12.6A
Cash.......................28,386
Accounts Receivable ............... 500
Prepaid Advertising ................ 480
Supplies .................. 300
Merchandise Inventory ............. 15,000
Store Equipment................. 25,000
Accumulated Depreciation—Store Equipment ..... 3,000
Office Equipment ............... 5,000
Accumulated Depreciation—Office Equipment .... 1,500
Notes Payable, due 2017 ............. 20,000
Accounts Payable ................ 2,705
Wages Payable
Social Security Tax Payable
Medicare Tax Payable
Unearned Seminar Fees .............. 6,000
Interest Payable
Vincent Arroyo, Capital ............ 32,700
Vincent Arroyo, Drawing ............ 14,110
Income Summary
Sales ................... 153,970
Sales Discounts ................. 200
Seminar Fee Income
Purchases ................. 91,000
Purchases Returns and Allowances ........ 1,000
Freight In .................. 225
Rent Expense ................ 13,200
Wages Expense .............. 24,000
Payroll Taxes Expense ........... 3,324
Depreciation Expense—Store Equipment
Depreciation Expense—Office Equipment
Advertising Expense
Supplies Expense
Interest Expense .............. 150

INSTRUCTIONS
1. Prepare a classified income statement for the year ended December 31, 2016. 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, 2016. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 2016.
Analyze: What is the inventory turnover for Artisan Wines?



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  • CreatedAugust 08, 2014
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