The trial balance of Runway Fashion Center contained the accounts on the next page at November 30, the end of the company”s fiscal year.
|
RUNWAY FASHION CENTER |
||
|
Debit |
Credit |
|
|
Cash |
$ 37,700 |
|
|
Accounts Receivable |
33,700 |
|
|
Inventory |
43,000 |
|
|
Supplies |
8,800 |
|
|
Equipment |
143,000 |
|
|
Accumulated Depreciation—Equipment |
$ 41,000 |
|
|
Notes Payable |
62,000 |
|
|
Accounts Payable |
17,800 |
|
|
Common Stock |
80,000 |
|
|
Retained Earnings |
30,000 |
|
|
Dividends |
12,000 |
|
|
Sales Revenue |
757,200 |
|
|
Sales Returns and Allowances |
6,200 |
|
|
Cost of Goods Sold |
505,400 |
|
|
Salaries and Wages Expense |
110,000 |
|
|
Advertising Expense |
26,400 |
|
|
Utilities Expense |
14,000 |
|
|
Maintenance and Repairs Expense |
12,100 |
|
|
Freight-out |
11,700 |
|
|
Rent Expense |
24,000 |
|
|
$988,000 |
$988,000 |
|
Adjustment data:
1. Store supplies on hand total $3,100.
2. Depreciation is $14,000 on the store equipment and $6,000 on the delivery equipment.
3. Interest of $4,400 is accrued on notes payable at November 30.
4. Income tax due and unpaid at November 30 is $3,000. Other data: $24,000 of notes payable are due for payment next year.
Instructions
(a) Journalize the adjusting entries.
(b) Prepare T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at November 30, 2012.