The Artisan Wines is a retail store selling vintage wines. On December 31, 2019,
ID: 2398485 • Letter: T
Question
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. 2 Artiaan Wines Worksheet Year Ended December 31, 2019 Trial Balance Debit djusements Adjusted Trial Balanee Account Nane Credit Debit Credit Debit credit Cash 29,186.00 580.00 960.00 380.00 15,800.00 29,000.00 s 29,186.00 580.00 640.00 140.00 12,800.00 15, 800.00 12, 800.00 29,000.00 Prepaid dvertiaing 320.00 240.00 Skioped Supplies Merchandise Inventory store Equipnent eBlook ec iation-store Equipment 3,800.00 3,325-00 7,125.00 Office Equipaent Accurulated Depreciation-office Equipnent Notes Payable, due 2020 Accounts Payable Mages Payable Social Security Tax Payable Hedieare Tax Payable 5, 800.00 1,580.00 24,000.00 3,505.00 1,080.00 2,660.00 24, 000.00 3,505.00 400.00 24.80 5.80 24.80 5.80 2, 800.00 120.00 31,020.00 8, 400.00 5,600.00 Interest Payable vincent Arrayo, Capital vincent Arroyo, Dzawing 120.00 1,020.00 14,910.00 14.910.00 Income Suaar)Y 15,800.00 12,800.00 15, 800.00 12,800.00 161,970.00 161,970.00 5, 500.00 ,080.00 Bales Discounta Seninar Pee Iscone 280.00 280.00 5, 600.00 95,000.00 95,000.00 Purchasss Returns and allovanoes Freight In Rent Txpense Mages Expense Payzoll Taxes Expense 1,080.00 305.00 14,000.OD 24, 800.0D , 224.00 305.00 14.000.00 25, 200.00 4. 154.6o 400.00Explanation / Answer
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Analyze:
Inventory turnover = Cost of goods sold/Average inventory = $97225/$14300 = 6.80
Average inventory = (Beginning inventory + Ending inventory)/2 = ($15800 + $12800)/2 = $28600/2 = $14300
ARTISAN WINES Income Statement For the Year Ended December 31, 2019 Operating revenue Sales 161970.00 Less: Sales discounts 280.00 Net sales 161690.00 Cost of goods sold Merchandise inventory, January 1, 2019 15800.00 Add: Purchases 95000.00 Freight-in 305.00 Delivered cost of purchases 95305.00 Less: Purchase returns and allowances 1080.00 Net delivered cost of purchases 94225.00 Goods available for sale 110025.00 Less: Merchandise inventory, December 31, 2019 12800.00 Cost of goods sold 97225.00 Gross profit 64465.00 Operating expenses Rent expense 14000.00 Wages expense 25200.00 Payroll taxes expense 4154.60 Depreciation expense-store equipment 3325.00 Depreciation expense-office equipment 1080.00 Advertising expense 320.00 Supplies expense 240.00 Total operating expenses 48319.60 Income from operations 16145.40 Other income Seminar fee income 5600.00 5600.00 Other expenses Interest expense 350.00 350.00 Net nonoperating income 5250.00 Net income 21395.40Related Questions
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