The adjusted trial balance of Daddy€™s Music Company at April 30, 2012, follows:

Requirements
1. Journalize Daddy€™s closing entries.
2. Prepare Daddy€™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 April 30, 2012. Inventory on hand one year ago, at April 30, 2011, was $13,000.
4. For the year ended April 30, 2011, Daddy€™s 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?

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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