Hog Wild is a retail firm that sells motorcycles, parts, and accessories. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2013.
INSTRUCTIONS
1. Prepare a classified income statement for the year ended December 31, 2013. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December 31, 2013. No additional investments were made during the period.
3. Prepare a classified balance sheet as of December 31, 2013. The mortgage and the long-term notes extend for more than one year.
ACCOUNTS
| Debit | Credit | |
Cash | $ 14,350 |
| |
Petty Cash Fund | 200 |
| |
Notes Receivable | 6,000 |
| |
Accounts Receivable | 54,600 |
| |
Allowance for Doubtful Accounts |
| $ 5,000 | |
Interest Receivable | 200 |
| |
Merchandise Inventory | 87,915 |
| |
Warehouse Supplies | 3,700 |
| |
Office Supplies | 1,800 |
| |
Prepaid Insurance | 6,900 |
| |
Land | 20,400 |
| |
Building | 53,100 |
| |
Accumulated Depreciation—Building |
| 8,400 | |
Warehouse Equipment | 24,000 |
| |
Accumulated Depreciation—Warehouse Equipment |
| 4,000 | |
Office Equipment | 12,800 |
| |
Accumulated Depreciation—Office Equipment |
| 1,800 | |
Notes Payable—Short-Term |
| 8,000 | |
Accounts Payable |
| 32,500 | |
Interest Payable |
| 1,800 | |
Notes Payable—Long-Term |
| 6,000 | |
Mortgage Payable |
| 35,875 | |
Nick Henry, Capital (Jan. 1) |
| 198,710 | |
Nick Henry, Drawing | 56,000 |
| |
Income Summary | 88,980 | 87,915 | |
Sales |
| 608,417 | |
Sales Returns and Allowances | 9,400 |
| |
Interest Income |
| 720 | |
Purchases | 230,050 |
| |
Freight In | 9,600 |
| |
Purchases Returns and Allowances |
| 6,420 | |
Purchases Discounts |
| 5,760 | |
Warehouse Wages Expense | 64,300 |
| |
Warehouse Supplies Expense | 4,300 |
| |
Depreciation Expense—Warehouse Equipment | 2,400 |
| |
Salaries Expense—Sales | 78,900 |
| |
Travel Expense—Sales | 21,000 |
| |
Delivery Expense | 35,400 |
| |
Salaries Expense—Office | 57,500 |
| |
Office Supplies Expense | 1,360 |
| |
Insurance Expense | 9,500 |
| |
Utilities Expense | 6,912 |
| |
Telephone Expense | 4,370 |
| |
Payroll Taxes Expense | 19,200 |
| |
Building Repairs Expense | 3,100 |
| |
Property Taxes Expense | 11,700 |
| |
Uncollectible Accounts Expense | 2,900 |
| |
Depreciation Expense—Building | 3,200 |
| |
Depreciation Expense—Office Equipment | 1,680 |
| |
Interest Expense | 3,600 |
| |
Totals | $1,011,317 | $1,011,317 | |
Analyze: What is the inventory turnover for Hog Wild?
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