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Dominique Fouque owns and operates Dominique’s Doll House. She has a small shop in which she sells new and antique dolls. She is particularly well known for her collection of antique Ken and Barbie dolls. A completed spreadsheet for 20-3 is shown on page 610. Fouque made no additional investments during the year and the long-term note payable is due in 20-9. No portion of the long-term note is due within the next year. Net credit sales for 20-3 were $38,000, and receivables on January 1 were $3,000. REQUIRED 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity. 3. Prepare a balance sheet. 4. Compute the following measures of performance and financial condition for 20-3: (a) Current ratio (b) Quick ratio (c) Working capital (d) Return on owner’s equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and the average number of days required to sell inventory 5. Prepare adjusting entries and indicate which should be reversed and why. 6. Open an Income Summary account. Post adjusting and closing entries (prepared in 7) to this account. 7. Prepare closing entries. 8. Prepare reversing entries for the adjustments where appropriate.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 15, Problem 1MP
Textbook Problem

Dominique Fouque owns and operates Dominique’s Doll House. She has a small shop in which she sells new and antique dolls. She is particularly well known for her collection of antique Ken and Barbie dolls. A completed spreadsheet for 20-3 is shown on page 610. Fouque made no additional investments during the year and the long-term note payable is due in 20-9. No portion of the long-term note is due within the next year. Net credit sales for 20-3 were $38,000, and receivables on January 1 were $3,000.

REQUIRED

  1. 1. Prepare a multiple-step income statement.
  2. 2. Prepare a statement of owner’s equity.
  3. 3. Prepare a balance sheet.
  4. 4. Compute the following measures of performance and financial condition for 20-3:
    1. (a) Current ratio
    2. (b) Quick ratio
    3. (c) Working capital
    4. (d) Return on owner’s equity
    5. (e) Accounts receivable turnover and average number of days required to collect receivables
    6. (f) Inventory turnover and the average number of days required to sell inventory
  5. 5. Prepare adjusting entries and indicate which should be reversed and why.
  6. 6. Open an Income Summary account. Post adjusting and closing entries (prepared in 7) to this account.
  7. 7. Prepare closing entries.
  8. 8. Prepare reversing entries for the adjustments where appropriate.

Chapter 15, Problem 1MP, Dominique Fouque owns and operates Dominiques Doll House. She has a small shop in which she sells

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Chapter 15 Solutions

College Accounting, Chapters 1-27
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Ch. 15 - Use the following spreadsheet for Yoders Cool...Ch. 15 - Use the following spreadsheet for Yoders Cool...Ch. 15 - Use the following spreadsheet for Yoders Cool...Ch. 15 - Using the financial statements for Hermans Parts...Ch. 15 - Using the spreadsheet provided on page 594 for...Ch. 15 - LO6 Pinto Company made the following adjusting...Ch. 15 - Describe the nature of the two forms of an income...Ch. 15 - Name and describe the calculation of two measures...Ch. 15 - Describe how to calculate the following ratios (a)...Ch. 15 - Where is the information obtained that is needed...Ch. 15 - Explain the function of each of the four closing...Ch. 15 - What is the purpose of a post-closing trial...Ch. 15 - What is the primary purpose of reversing entries?Ch. 15 - What is the customary date for reversing entries?Ch. 15 - What adjusting entries should be reversed?Ch. 15 - REVENUE SECTION. MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial statements...Ch. 15 - CLOSING ENTRIES Using the spreadsheet and...Ch. 15 - REVERSING ENTRIES From the spreadsheet used in...Ch. 15 - ADJUSTING, CLOSING, AND REVERSING ENTRIES Prepare...Ch. 15 - INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the spreadsheet and financial...Ch. 15 - END-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND...Ch. 15 - REVENUE SECTION, MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial...Ch. 15 - CLOSING ENTRIES Using the spreadsheet and...Ch. 15 - REVERSING ENTRIES From the spreadsheet in Exercise...Ch. 15 - ADJUSTING, CLOSING, AND REVERSING ENTRIES Prepare...Ch. 15 - INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the work sheet and financial...Ch. 15 - END-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND...Ch. 15 - A friend of yours has the opportunity to invest in...Ch. 15 - Dominique Fouque owns and operates Dominiques Doll...Ch. 15 - John Byers owns and operates Byers Building...

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