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 Accounts receivabloe Inventory Supplies Furniture Accumulated depreciation Accounts payable Salary payable Unearned sales revenue Note payable, long-term Papi, capital Papi, drawing Sales revenue Sales returns Cost of goods sold Selling expense General expense Interest expense Total S 3,600 38,800 17.200 200 40,000 S 8,400 13,300 1,200 6,700 15,000 36,000 40,500 180,000 5,000 82,500 19,200 12,000 1,600 S 260,600 260,600