The adjusted trial balance of Daddys Music Company at April 30, 2012, follows: Requirements 1. Journalize Daddys
Question:
Requirements
1. Journalize Daddys closing entries.
2. Prepare Daddys single-step income statement for the year.
3. Compute the gross profit percentage, the rate of inventory turnover, and the days in inventory for the fiscal year ending April 30, 2012. Inventory on hand one year ago, at April 30, 2011, was $13,000.
4. For the year ended April 30, 2011, Daddys gross profit percentage was 50%, and inventory turnover was 4.9 times. Did the results for the year ended April 30, 2012, suggest improvement or deterioration in profitability over lastyear?
DADDY'S MUSIC COMPANY Adjusted Trial Balance April 30, 2012 Debit Credit Account Cash 4,300 Accounts receivable Inventory Supplies Furniture Accumulated depreciation Accounts payable Salary payable 38,200 17,800 600 39,400 24 9,000 13,600 1,200 Unearned sales revenue 6,600 Note payable, long-term Common stock Retained earnings 14,000 5,500 34,600 Dividends 40,000 Sales revenue 180,000 Sales returns 8,000 Cost of goods sold Selling expense General expense 81,800 19,200 14,000 Interest expense 1,200 Total S 264,500 $ 264,500
Step by Step Answer:
Req 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST REF DEBIT CREDIT CLOSING ENTRIES Apr 30 Sales reve...View the full answer
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
The adjusted trial balance of Jobs4U Employment Service, Inc., follows but is incomplete. Requirements 1. Calculate and enter the adjustment amounts directly in the missing Adjustments columns. 2....
-
On December 31, the adjusted trial balance of Domino Inc. shows the following selected data: Analysis shows that adjusting entries had been made, and included above, for (1) 59,700 of services...
-
On December 31, the adjusted trial balance of Oslo Employment Agency shows the following selected data. Analysis shows that adjusting entries were made to (1) accrue $4,500 of commission revenue and...
-
Question 2 A company manufactures and sells x units of audio system per month. The cost function and the price function (in RM) are given as below. Cost: C(x) = 40,000 + 600 x Price: p(x) = 3,000 -...
-
Hassellhouf Company's trial balance at December 31, 2019, is presented below. All 2019 transactions have been recorded except for the items described following the trial balance. Unrecorded...
-
Louis Vuitton Mot Hennessy (LVMH), the well-known French luxury goods company, bought from the Bulgari family a controlling 66 percent interest in Bulgari SpA, the Italian jewelry maker. The value of...
-
What are the key characteristics of venture capital?
-
A. Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Rays birthdate is February 21, 1990...
-
a) Write C++ statements for the algorithms in Figure 2. (10 marks) Initialize total to zero Initialize counter to zero Input the first mark while the user has not as yet entered the sentinel add this...
-
Trnkle Company, Incorporated made several purchases of long-term assets in Year 1. The detals of each purchase are presented here. New Office Equlpment 1. List price: $38,300; terms: 210 n/30; pald...
-
Aspen Publishers Companys selected accounts as of November 30, 2012, follow: Requirements 1. Prepare the multi-step income statement, statement of retained earnings, and balance sheet for its first...
-
The accounts of Smith Electronics Company are listed along with their balances before closing for the month ended October 31, 2012. Requirements 1. Prepare Smith Electronics multi-step income...
-
At one point, some Treasury bonds were callable. Consider the prices on the following three Treasury issues as of February 24, 2019: The bond in the middle is callable in February 2020. What is the...
-
Does competent communication ever necessitate dishonesty? Explain.
-
Explain how the suppliers payment period is calculated.
-
A dysfunctional group of hopeful, unpublished writers attempts to remain unconditionally positive and supportive in their communication in the face of constant rejection. Not for everyone, but this...
-
Define working capital.
-
Ltd processes and purifies a basic chemical which is then broken down by reaction to give three separate products. Explain the approaches to joint cost allocation using the following information:...
-
Let Prove that its Fourier transform is 1 if |x| f(x) = rect 0 otherwise
-
1A. If the researcher is concerned about the number of variables, the nature of the analysis, and completion rates, then, he/she is at which stage of the sampling design process (Figure 11.1 in the...
-
Draw the electron dot formula for the carbonate ion, CO 3 2-. How many nonbonding electron pairs are in a carbonate ion? (a) 4 (b) 8 (c) 12 (d) 24 (e) none of the above
-
If a functional expense classification is used for the statement of comprehensive income, what must also be disclosed?
-
How is the term provision used differently under IFRS than under U.S. GAAP?
-
How is the term provision used differently under IFRS than under U.S. GAAP?
-
Develop a 3-year financial projection for your proposed cancer tele-genetics program . State any and all assumptions you make in creating your estimates. Please consider the following in creating...
-
Lets assume that we have project L, which has a 40% chance of turning out good. The company Raises $7,000, 50% from bondholders demanding a 6% interest rate and 50% from stockholders, which becomes...
-
Please assist in the filling out the above and below table. I have provided all information that has been provided to me. Company Shares Outstanding Latest Share Price MVE Total Debt W d W e a b c =...
Study smarter with the SolutionInn App