Problem 13.3A (Static) Preparing classified financial statements. LO 13-1, 13-2, 13-3 The Enoteca Fine Wines is a retail store selling vintage wines. On December 31, 20X1, the firm's general ledger contained the accounts and balances below. All account balances are normal. Enoteca Fine Wines Worksheet Year Ended December 31, 20X1 Trial Balance Adjusted Trial Balance Debit Income Statement Balance Sheet Adjustments Debit Account Name Debit Credit Credit Credit Debit Credit Debit Credit Cash Accounts Receivable $ 29,886.00 1,500.00 $ 29,886.00 1,500.00 320.00 $29,886.00 1,500.00 480.00 160.00 320.00 Prepaid Advertising Supplies Merchandise Inventory Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation-Office Equipment Notes Payable, due 20X2 Accounts Payable Wages Payable Social Security Tax Payable Medicare Tax Payable Unearned Seminar Fees Interest Payable Vincent Carbone, Capital Vincent Carbone, Drawing Income Summary 300.00 170.00 130.00 130.00 14,000.00 27,000.00 14,000.00 27,000.00 14,000.00 15,000.00 15,000.00 27,000.00 3,000.00 3,800.00 6,800.00 6,800.00 6,000.00 6,000.00 6,000.00 1,500.00 20,000.00 4,705.00 2,750.00 20,000.00 4,705.00 500.00 2,750.00 20,000.00 4,705.00 500.00- 1,250.00 500.00 31.00 31.00 31.00 7.25 7.25 7.25 2,000.00 2,000.00 200.00 8,000.00 6,000.00 200.00 200.00 32,700.00 32,700.00 32,700.00 14,110.00 14,110.00 15,000.00 14,110.00 14,000.00 154,970.00 15,000.00 14,000.00 154,970.00 15,000.00 14,000.00 Sales 154,970.00 Sales Discounts 200.00 200.00 200.00 6,000.00 6,000.00 6,000.00 Seminar Fee Income Purchases 91,000.00 91,000.00 91,000.00 1,500.00 1,500.00 1,500.00 Purchases Returns and Allowances 225.00 225.00 225.00 Freight In Rent Expense Wages Expense Payroll Taxes Expense Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Advertising Expense Supplies Expense Interest Expense 13,200.00 24,500.00 3,362.25 3,800.00 1,250.00 160.00 13,200.00 24,500.00 3,362.25 3,800.00 1,250.00 160.00 13,200.00 24,000.00 3,324.00 500.00 38.25 3,800.00 1,250.00 160.00 170.00 170.00 170.00 150.00 200.00 350.00 350.00 $226,375.00 $226,375.00 $41,118.25 $41,118.25 $246,163.25 $246,163.25 $153,217.25 $176,470.00 $92,946.00 $69,693.25 23,252.75 Totals 23,252.75 Net Income $176,470.00 $176,470.00 $92,946.00 $92,946.00 Required: 1. Prepare a classified income statement for the year ended December 31, 20X1. 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, 20X1. No additional investments were made during the year. 3. Prepare a classified balance sheet as of December 31, 20X1. MacBook Pro monso Net Income 23,252.75 23,252.75 $176,470.00 $176,470.00 $92,946.00 $92,946.00 Required: 1. Prepare a classified income statement for the year ended December 31, 20X1. 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, 20X1. No additional investments were made during the year. 3. Prepare a classified balance sheet as of December 31, 20X1. Analyze: What is the inventory turnover for Enoteca Fine Wines? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Prepare a classified income statement for the year ended December 31, 20X1. The company does not classify its operating expenses as selling expenses and general and administrative expenses. (Round your answers to 2 decimal places.) Enoteca Fine Wines Income Statement Operating revenue Net sales Cost of goods sold Merchandise inventory, January 1, 20X1 0.00 Delivered cost of purchases Net delivered cost of purchases 0.00 Goods available for sale Cost of goods sold 0.00 Operating expenses MacBook Pro %24 %24
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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What is the inventory turnover for Enoteca Fine Wines?