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 Accounts receivable Inventory Supplies Furniture Accumulated depreciation Accounts payable Salary payable Unearned sales revenue Note payable, long-term Otousan, capita Otousan, drawing Sales revenue Sales returns Cost of goods sold $ 4,300 38,200 17,800 600 39,400 $ 9,000 13,600 1,200 6,600 14,000 40,100 40,000 180,000 8,000 81,800 19,200 14,000 1,200 Selling expense General expense Interest expense Total $ 264 500 $ 264,500