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College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1 $ 8,400 1,640 320 540 890 90 1,340 300 Cash Accounts Receivable Inventory Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Rent Expense Salaries and Wages Expense Depreciation Expense Income Tax Expense Office Expenses 5,700 3,000 12,440 7,300 990 1,600 90 0 1,100 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier The inventory on December 1 consisted of 800 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below a. Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60. b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60 c Sold 2,000 coasters on account on 12/3 at a unit price of $1.00. d. Collected $850 from customers on account on 12/4 e. Paid the supplier $1,540 cash on account on 12/18 Paid employees $500 on 12/23, of which $260 related to work done in November and $240 was for wages up to December 22 9. Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawail. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31 n. College Coasters has not yet recorded $160 of office expenses incurred in December on account 1. The company estimates that the equipment depreciates at a rate of $8 per month. One month of depreciation needs to be recorded 1. Wages for the period from December 23-31 are $100 and will be paid on January 15, k The $540 of Prepaid Rent relates to a six-month period ending on May 31 of next year. 1. The company incurred $700 of income tax but has made no tax payments this year m No shrinkage or damage was discovered when the inventory was counted on December 31, n. The company did not declare dividends and there were no transactions involving common stock Prepare the journal entries to record the transactions (a) through (n). Review the accounts as shown in the General Ledger and Trial Balance tabs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 Dec 01 168 Inventory Accounts Payable 168 2 Dec 02 405 Inventory Accounts Payable 405 3 Dec 03 2,000 Accounts Receivable Sales Revenue 2,000 4 Dec 03 7.300 $ Cost of Goods Sold Inventory C 7.300 5 Dec 04 > 850 > Cash Accounts Receivable 850 Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted from the dropdown, which will then populate the balances in those accounts from the trial balance. However, you will need to calculate and enter the amount of the net income or loss for the year ended December 31. Adjusted COLLEGE COASTERS Income Statement For the Year Ended December 31 Revenues Sales Revenue 14.440 Cost of Goods Sold 14,600 Gross Profit $ (160) Operating Expenses: Salaries and Wagos Expenso 1,940 Office Expenses 1.260 Rent Expense 1.080 Depreciation Expenso 98 0 Total Operating Expenses $ 4,378 Income before Income Tax Expense (4,538) Income Tax Expense 700 Net Income $ 2,049 000 000 Use the dropdowns to select the accounts properly included on the balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. However, you will need to enter the amount of the Equipment (Net of accumulated depreciation), Common stock and Retained earnings as of December 31. > Adjusted COLLEGE COASTERS Balance Sheet As of December 31 Assets Current Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Salaries and Wages Payable Income Taxes Payable Total Liabilities OOOOOO 7,210 2.790 (6,407) 450 4,043 890 4,933 >> 533 000 140 700 1.373 General Journal Trial Balance General Ledger Income Statement Analysis Balance Sheet Requirement Calculate the inventory turnover ratio and days to sell, assuming that inventory was $320 on January 1 of this year. (Use 365 days a year. Round your intermediate calculations and final answers to 1 decimal place.) times per year Inventory Turnover Ratio Days to Sell days

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