The trial balance of Mr. Eko Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
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MR. EKO FASHION CENTER |
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Trial Balance |
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November 30, 2012 |
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Debit |
Credit |
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Cash |
$ 8,700 |
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Accounts Receivable |
30,700 |
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Inventory |
44,700 |
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Supplies |
6,200 |
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Equipment |
133,000 |
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Accumulated Depreciation—Equipment |
$ 28,000 |
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Notes Payable |
51,000 |
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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 |
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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 |
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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, 2012. Notes payable of $20,000 are due in January 2013.
c) Journalize the adjusting entries.
d) Journalize the closing entries.
e) Prepare a post closing trial balance.