The trial balance of Terry Manning Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
|
TERRY MANNING FASHION CENTER |
||
|
Debit |
Credit |
|
|
Cash |
$28,700 |
|
|
Accounts Receivable |
30,700 |
|
|
Merchandise Inventory |
44700 |
|
|
Store Supplies |
6,200 |
|
|
Store Equipment |
85000 |
|
|
Accumulated Depreciation—Store Equipment |
$22,000.00 |
|
|
Delivery Equipment |
48,000 |
|
|
Accumulated Depreciation—Delivery Equipment |
6,000 |
|
|
Notes Payable |
51,000 |
|
|
Accounts Payable |
48,500 |
|
|
Terry Manning, Capital |
110,000 |
|
|
Terry Manning, Drawing |
12000 |
|
|
Sales |
755,200 |
|
|
Sales Returns and Allowances |
8,800 |
|
|
Cost of Goods Sold |
497,400 |
|
|
Salaries Expense |
140,000 |
|
|
Advertising Expense |
24,400 |
|
|
Utilities Expense |
14,000 |
|
|
Repair Expense |
12,100 |
|
|
Delivery Expense |
16,700 |
|
|
Rent Expense |
24,000 |
|
|
Totals |
$992,700 |
$992,700 |
Adjustment data:
1. Store supplies on hand totaled $2,500.
2. Depreciation is $9,000 on the store equipment and $5,000 on the delivery equipment.
3. Interest of $4,080 is accrued on notes payable at November 30.
4. Merchandise 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, 2010. Notes payable of 30,000 are due in January 2011.
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post closing trial balance.