Dominique Fouque owns and operates Dominique's Doll House. She has a small shop in which she...

 

 

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Dominique Fouque owns and operates Dominique's Doll House. She has a small shop in which she sells now and antique dolls. She is particularly well known for her collection of antique Ken and Barbie dolls. A completed spreadsheet for 20-3 is shown below. Fouque made no additional investments during the year and the long-term note payable is due in 20-9. No portion of the long-term note is due within the next year. Net credit sales for 20-3 were $38,000, and receivables on January 1 were $3,000. 2 Cash 4 Accounts Receivable s Merchandise Inventory > Office Supplies ACCOUNT TITLE Estimated Returns Inventory Prepaid Insurance Store Equipment 10 Accumulated Depreciation-Store Equipement 11 Notes Payable 11 Accounts Payable 11 Customer Refunds Payable 21 14 Wages Payable 15 Sales Tax Payable 16 Unearned Show Revenue Long-Term Note Payable Dominique Fooque, Capital n Dominique Fouque, Drawing Income Summary 31 Sales 2 Sales Returns and Allowances Show Revenue Purchases End-of-Period Spreadsheet For Year Ended December 31, 20-3 TRIAL BALANCE TRIAL BALANCE ADJUSTMENTS DEBIT 16,700.00 3,200.00 31,300.00 1,000.00 800.00 1,200.00 95.000.00 21,000.00 5,900.00 72,000.00 CREDIT 15,000.00 6,000.00 5.500.00 1,500.00 850.00 1,000.00 10,000.00 95,800.00 201,500.00 5,000.00 DEBIT (b) 28,000.00 (e) 1,100.00 700.00 (a) 31.300.00 (d) 1,000.00 (d 200.00 ADJUSTMENTS CREDIT (a) 31,300.00 (d) 1,000.00 (f) 600.00 (g) 400.00 (h) 5,000.00 (0 200.00 (1) 200.00 (b) 28,000.00 (e) 1,100.00 00700.00 ADJUSTED TRIAL BALANCE DEBIT 16,700.00 3,200.00 28,000.00 1,100.00 200.00 800.00 95,000.00 21,000.00 31,300.00 1,000.00 6,100.00 72.000.00 ADJUSTED TRIAL BALANCE CREDIT 20,000.00 6,000.00 5.500.00 1,700.00 200.00 850.00 300.00 10,000.00 95,800.00 28,000.00 1,100.00 201,500.00 5.700.00 Notes Payable Accounts Payable 1 Customer Refunds Payable Wages Payable Sales Tax Payable Unearned Show Revenue Long-Term Note Payable Dominique Fouque, Capital Dominique Fouque, Drawing Income Summary Sales 1 Sales Returns and Allowances Show Revenue Purchases 3 Purchases Returns and Allowances Freight in Wages Expense Rent Expense Office Supplies Expense Phone Expense Utilities Expense Insurance Expense Depreciation Expense Store Equipment Interest Expense Net Income 21,000.00 5,900.00 72,000.00 1,200.00 42,000.00 42,000.00 1,500.00 7,600.00 500.00 $342,900.00 6,000.00 5,500.00 1,500.00 850.00 1,000.00 10,000.00 95,800.00 201,500.00 5.000.00 750.00 $342.900.00 (700.00 (a) 31,300.00 (d) 1,000.00 200.00 (200.00 (f) 600.00 (g) 400.00 (h) 5,000.00 $68,500.00 (0 200.00 200.00 (b) 28,000.00 (e) 1,100.00 700.00 $68,500.00 21,000.00 31,300.00 1,000.00 6,100.00 72,000.00 1,200.00 42,200.00 42,000.00 600.00 1,500.00 7,500.00 400.00 5,000.00 500.00 $377,400.00 211,400.00 $25,650.00 6,000.00 5.500.00 1,700.00 200.00 850.00 300.00 10,000.00 95,800.00 28,000.00 1,100.00 201,500.00 5,700.00 750.00 $377,400.00 237,050.00 Required: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner's equity. 3. Prepare a balance sheet. 4. Compute the following measures of performance and financial condition for 20-3: (a) Current ratio (b) Quick ratio (c) Working capital (d) Return on owner's equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and the average number of days required to sell inventory 5. Prepare adjusting entries. 6. Open an Income Summary account. Post adjusting and closing entries (prepared in 7) to this account. 7. Prepare closing entries. 8. Prepare reversing entries for the adjustments where appropriate. Dominique Fouque owns and operates Dominique's Doll House. She has a small shop in which she sells now and antique dolls. She is particularly well known for her collection of antique Ken and Barbie dolls. A completed spreadsheet for 20-3 is shown below. Fouque made no additional investments during the year and the long-term note payable is due in 20-9. No portion of the long-term note is due within the next year. Net credit sales for 20-3 were $38,000, and receivables on January 1 were $3,000. 2 Cash 4 Accounts Receivable s Merchandise Inventory > Office Supplies ACCOUNT TITLE Estimated Returns Inventory Prepaid Insurance Store Equipment 10 Accumulated Depreciation-Store Equipement 11 Notes Payable 11 Accounts Payable 11 Customer Refunds Payable 21 14 Wages Payable 15 Sales Tax Payable 16 Unearned Show Revenue Long-Term Note Payable Dominique Fooque, Capital n Dominique Fouque, Drawing Income Summary 31 Sales 2 Sales Returns and Allowances Show Revenue Purchases End-of-Period Spreadsheet For Year Ended December 31, 20-3 TRIAL BALANCE TRIAL BALANCE ADJUSTMENTS DEBIT 16,700.00 3,200.00 31,300.00 1,000.00 800.00 1,200.00 95.000.00 21,000.00 5,900.00 72,000.00 CREDIT 15,000.00 6,000.00 5.500.00 1,500.00 850.00 1,000.00 10,000.00 95,800.00 201,500.00 5,000.00 DEBIT (b) 28,000.00 (e) 1,100.00 700.00 (a) 31.300.00 (d) 1,000.00 (d 200.00 ADJUSTMENTS CREDIT (a) 31,300.00 (d) 1,000.00 (f) 600.00 (g) 400.00 (h) 5,000.00 (0 200.00 (1) 200.00 (b) 28,000.00 (e) 1,100.00 00700.00 ADJUSTED TRIAL BALANCE DEBIT 16,700.00 3,200.00 28,000.00 1,100.00 200.00 800.00 95,000.00 21,000.00 31,300.00 1,000.00 6,100.00 72.000.00 ADJUSTED TRIAL BALANCE CREDIT 20,000.00 6,000.00 5.500.00 1,700.00 200.00 850.00 300.00 10,000.00 95,800.00 28,000.00 1,100.00 201,500.00 5.700.00 Notes Payable Accounts Payable 1 Customer Refunds Payable Wages Payable Sales Tax Payable Unearned Show Revenue Long-Term Note Payable Dominique Fouque, Capital Dominique Fouque, Drawing Income Summary Sales 1 Sales Returns and Allowances Show Revenue Purchases 3 Purchases Returns and Allowances Freight in Wages Expense Rent Expense Office Supplies Expense Phone Expense Utilities Expense Insurance Expense Depreciation Expense Store Equipment Interest Expense Net Income 21,000.00 5,900.00 72,000.00 1,200.00 42,000.00 42,000.00 1,500.00 7,600.00 500.00 $342,900.00 6,000.00 5,500.00 1,500.00 850.00 1,000.00 10,000.00 95,800.00 201,500.00 5.000.00 750.00 $342.900.00 (700.00 (a) 31,300.00 (d) 1,000.00 200.00 (200.00 (f) 600.00 (g) 400.00 (h) 5,000.00 $68,500.00 (0 200.00 200.00 (b) 28,000.00 (e) 1,100.00 700.00 $68,500.00 21,000.00 31,300.00 1,000.00 6,100.00 72,000.00 1,200.00 42,200.00 42,000.00 600.00 1,500.00 7,500.00 400.00 5,000.00 500.00 $377,400.00 211,400.00 $25,650.00 6,000.00 5.500.00 1,700.00 200.00 850.00 300.00 10,000.00 95,800.00 28,000.00 1,100.00 201,500.00 5,700.00 750.00 $377,400.00 237,050.00 Required: 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner's equity. 3. Prepare a balance sheet. 4. Compute the following measures of performance and financial condition for 20-3: (a) Current ratio (b) Quick ratio (c) Working capital (d) Return on owner's equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and the average number of days required to sell inventory 5. Prepare adjusting entries. 6. Open an Income Summary account. Post adjusting and closing entries (prepared in 7) to this account. 7. Prepare closing entries. 8. Prepare reversing entries for the adjustments where appropriate.