The trial balance of Valdez Fashion Center contained the following accounts at November 30, the end of the company”s fiscal year.
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VAIDEZ FASHION CENTER Trial Balance November 30, 2014 |
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Cash Accounts Receivable Inventory Supplies Equipment |
Debit |
Credit |
|
$8,700 30,700 |
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Accumulated Depreciation—Equipment |
$ 28,000 |
|
|
Notes Payable |
51,000 |
|
|
Accounts Payable |
48,500 |
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Owner”s Capital |
90,000 |
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|
Owner”s Drawings |
12,000 |
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Sales Revenue |
755,200 |
|
|
Sales Returns and Allowances |
8,800 |
|
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Cost of Goods Sold |
497,400 |
|
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Salaries and Wages Expense |
140,000 |
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|
Advertising Expense |
24,400 |
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|
Utilities Expense |
14,000 |
|
|
Maintenance and Repairs Expense |
12,100 |
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|
Freight Out |
16,700 |
|
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Rent Expense |
24,000 |
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|
Totals |
$972,700 |
$972,700 |
Adjustment data:
1. Supplies on hand totaled $2,000.
2. Depreciation is $11,500 on the equipment.
3. Interest of $4,000 is accrued on notes payable at November 30.
4. Inventory actually on hand is $44,400.
Instructions
(a) Enter the trial balance on a worksheet, and complete the worksheet.
(b) Prepare a multiple step income statement and an owner”s equity statement for the year, and a classified balance sheet as of November 30, 2014. Notes payable of $20,000 are due in January 2015.
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post closing trial balance.