Description
The Artisan Wines is a retail store selling vintage wines. On December 31, 2019, the firm’s general ledger contained the accounts and balances below. All account balances are normal.
Artisan Wines Worksheet Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||
Trial Balance | Adjustments | Adjusted Trial Balance | Income Statement | Balance Sheet | |||||||||||||||||||||||||||
Account Name | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |||||||||||||||||||||
Cash | $ | 28,386.00 | $ | 28,386.00 | $ | 28,386.00 | |||||||||||||||||||||||||
Accounts Receivable | 500.00 | 500.00 | 500.00 | ||||||||||||||||||||||||||||
Prepaid Advertising | 480.00 | 160.00 | 320.00 | 320.00 | |||||||||||||||||||||||||||
Supplies | 300.00 | 140.00 | 160.00 | 160.00 | |||||||||||||||||||||||||||
Merchandise Inventory | 15,000.00 | 13,000.00 | 15,000.00 | 13,000.00 | 13,000.00 | ||||||||||||||||||||||||||
Store Equipment | 25,000.00 | 25,000.00 | 25,000.00 | ||||||||||||||||||||||||||||
Accumulated Depreciation—Store Equipment | 3,000.00 | 3,000.00 | 6,000.00 | 6,000.00 | |||||||||||||||||||||||||||
Office Equipment | 5,000.00 | 5,000.00 | 5,000.00 | ||||||||||||||||||||||||||||
Accumulated Depreciation—Office Equipment | 1,500.00 | 1,125.00 | 2,625.00 | 2,625.00 | |||||||||||||||||||||||||||
Notes Payable, due 2020 | 20,000.00 | 20,000.00 | 20,000.00 | ||||||||||||||||||||||||||||
Accounts Payable | 2,705.00 | 2,705.00 | 2,705.00 | ||||||||||||||||||||||||||||
Wages Payable | 500.00 | 500.00 | 500.00 | ||||||||||||||||||||||||||||
Social Security Tax Payable | 31.00 | 31.00 | 31.00 | ||||||||||||||||||||||||||||
Medicare Tax Payable | 7.25 | 7.25 | 7.25 | ||||||||||||||||||||||||||||
Unearned Seminar Fees | 6,000.00 | 4,000.00 | 2,000.00 | 2,000.00 | |||||||||||||||||||||||||||
Interest Payable | 100.00 | 100.00 | 100.00 | ||||||||||||||||||||||||||||
Vincent Arroyo, Capital | 32,700.00 | 32,700.00 | 32,700.00 | ||||||||||||||||||||||||||||
Vincent Arroyo, Drawing | 14,110.00 | 14,110.00 | 14,110.00 | ||||||||||||||||||||||||||||
Income Summary | 15,000.00 | 13,000.00 | 15,000.00 | 13,000.00 | 15,000.00 | 13,000.00 | |||||||||||||||||||||||||
Sales | 153,970.00 | 153,970.00 | 153,970.00 | ||||||||||||||||||||||||||||
Sales Discounts | 200.00 | 200.00 | 200.00 | ||||||||||||||||||||||||||||
Seminar Fee Income | 4,000.00 | 4,000.00 | 4,000.00 | ||||||||||||||||||||||||||||
Purchases | 91,000.00 | 91,000.00 | 91,000.00 | ||||||||||||||||||||||||||||
Purchases Returns and Allowances | 1,000.00 | 1,000.00 | 1,000.00 | ||||||||||||||||||||||||||||
Freight In | 225.00 | 225.00 | 225.00 | ||||||||||||||||||||||||||||
Rent Expense | 13,200.00 | 13,200.00 | 13,200.00 | ||||||||||||||||||||||||||||
Wages Expense | 24,000.00 | 500.00 | 24,500.00 | 24,500.00 | |||||||||||||||||||||||||||
Payroll Taxes Expense | 3,324.00 | 38.25 | 3,362.25 | 3,362.25 | |||||||||||||||||||||||||||
Depreciation Expense—Store Equipment | 3,000.00 | 3,000.00 | 3,000.00 | ||||||||||||||||||||||||||||
Depreciation Expense—Office Equipment | 1,125.00 | 1,125.00 | 1,125.00 | ||||||||||||||||||||||||||||
Advertising Expense | 160.00 | 160.00 | 160.00 | ||||||||||||||||||||||||||||
Supplies Expense | 140.00 | 140.00 | 140.00 | ||||||||||||||||||||||||||||
Interest Expense | 150.00 | 100.00 | 250.00 | 250.00 | |||||||||||||||||||||||||||
Totals | $ | 220,875.00 | $ | 220,875.00 | $ | 37,063.25 | $ | 37,063.25 | $ | 238,638.25 | $ | 238,638.25 | $ | 152,162.25 | $ | 171,970.00 | $ | 86,476.00 | $ | 66,668.25 | |||||||||||
Net Income | 19,807.75 | 19,807.75 | |||||||||||||||||||||||||||||
$ | 171,970.00 | $ | 171,970.00 | $ | 86,476.00 | $ | 86,476.00 | ||||||||||||||||||||||||
Required:
- Prepare a classified income statement for the year ended December 31, 2019. The company does not classify its operating expenses as selling expenses and general and administrative expenses.
- Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
- Prepare a classified balance sheet as of December 31, 2019.
Analyze:
What is the inventory turnover for Artisan Wines?
Explanation & Answer
My excel was not working properly. I made it in Word.Please let me know if you have any question.Thanks
1.
Prepare a classified income statement for the year ended December 31, 2016
ARTISAN WINES
Income Statement
For the year ended December 31, 2016
Operating revenue
Sales
$153,970.00
Less: Sales discount
200.00
Net sales
$153,770.00
Cost of goods sold
Merchandise inventory, January 1, 2016
$15,000.00
Purchases
$91,000.00
Freight in
225.00
Delivered cost of purchases
$91,225.00
Less: Purchases returns and allowances
1,000.00
Net delivered cost of purchases
90,225.00
Good...
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