The adjusted trial balance of Big Papi Music Company at June 30, 2012, follows:

Requirements
1. Journalize Big Papi€™s closing entries.
2. Prepare Big Papi€™s 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 June 30, 2012. Inventory on hand one year ago, at June 30, 2011, was $12,200.
4. For the year ended June 30, 2011, Big Papi€™s gross profit percentage was 50%, and inventory turnover was 4.9 times. Did the results for the year ended June 30, 2012, suggest improvement or deterioration in profitability over lastyear?

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BIG PAPI MUSIC COMPANY Adjusted Trial Balance June 30, 2012 Debit Credit Account Cash 3,600 Accounts receivable Inventory Supplies 38,800 17,200 200 40,000 Furniture Accumulated depreciation Accounts payable Salary payable Unearned sales revenue 8,400 13,300 1,200 6,700 Note payable, long-term Common stock 15,000 4,900 Retained earnings Dividends Sales revenue 31,100 40,500 180,000 Sales returns 5,000 Cost of goods sold Selling expense General expense 82,500 19,200 12,000 Interest expense 1,600 Total $ 260,600 S 260,600