COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 13, Problem 3PA
Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem.
INSTRUCTIONS
- 1. 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.
- 2. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the year.
- 3. Prepare a classified
balance sheet as of December 31, 2019.
Analyze: What is the inventory turnover for Artisan Wines?
Recording adjustments and completing the worksheet.
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.
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.
INSTRUCTIONS:
- 1. Prepare the
Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019. - 2. Enter the adjustments below in the Adjustments section of the worksheet. Identify each adjustment with the appropriate letter.
- 3. Complete the worksheet.
ADJUSTMENTS:
a.–b. Merchandise inventory at December 31, 2019, was counted and determined to be $13,000.
c. The amount recorded as prepaid advertising represents $480 paid on September 1, 2019, for 12 months of advertising.
d. The amount of supplies on hand at December 31 was $160.
e. Depreciation on store equipment was $3,000 for 2019.
f. Depreciation on office equipment was $1,125 for 2019.
g. Unearned seminar fees represent $6,000 received on November 1, 2019, for six seminars. At December 31, four of these seminars had been conducted.
h. Wages owed but not paid at December 31 were $500.
i. On December 31, 2019, the firm owed the employer’s social security tax ($31.00) and Medicare tax ($7.25).
j. The note payable bears interest at 6 percent per annum. One month’s interest is owed at December 31, 2019.
Analyze: What was the amount of revenue earned by conducting seminars during the year ended December 31, 2019?
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Chapter 13 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
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