Obtain all data necessary from the worksheet prepared for Enoteca Fine Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem.

Data from in problem 12.6A

Enoteca Fine 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.

INSTRUCTIONS:
1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1.
2. Enter the adjustments below in the Adjustments section of the worksheet. Identify each adjustment with the appropriate letter.
3. Complete the worksheet.

ADJUSTMENTS:
a.–b. Merchandise inventory at December 31, 20X1, was counted and determined to be $14,000.
c. The amount recorded as prepaid advertising represents $480 paid on September 1, 20X1, for 12 months of advertising.
d. The amount of supplies on hand at December 31 was $130.
e. Depreciation on store equipment was $3,800 for 20X1.

f. Depreciation on office equipment was $1,250 for 20X1.
g. Unearned seminar fees represent $8,000 received on November 1, 20X1, for four seminars.
At December 31, three of these seminars had been conducted.
h. Wages owed but not paid at December 31 were $500.
i. On December 31, 20X1, the firm owed the employer’s social security tax ($31.00) and Medicare tax ($7.25).
j. The note payable bears interest at 6 percent per annum. Two months of interest is owed at December 31, 20X1.

Analyze: 

What is the inventory turnover for Enoteca Fine Wines?

Transcribed Image Text:

Cash Accounts Receivable Prepaid Advertising $ 29,886 1,500 480