(Financial Statements, Adjusting and Closing Entries) The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
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BELLEMY FASHION CENTER |
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Debit |
Credit |
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Cash |
$28,700 |
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Accounts Receivable |
33,700 |
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Inventory |
45,000 |
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Supplies |
5,500 |
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Equipment |
133,000 |
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Accumulated Depreciation—Equipment |
$24,000 |
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Notes Payable |
51,000 |
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Accounts Payable |
48,500 |
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Common Stock |
90,000 |
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Retained Earnings |
8,000 |
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Sales Revenue |
757,200 |
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Sales Returns and Allowances |
4,200 |
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Cost of Goods Sold |
495,400 |
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Salaries and Wages Expense |
140,000 |
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Advertising Expense |
26,400 |
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Utilities Expenses |
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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$978,700 |
$978,700 |
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Adjustment data:
1. Supplies on hand totaled $1,500.
2. Depreciation is $15,000 on the equipment.
3. Interest of $11,000 is accrued on notes payable at November 30.
Other data:
1. Salaries expense is 70% selling and 30% administrative.
2. Rent expense and utilities expense are 80% selling and 20% administrative.
3. $30,000 of notes payable are due for payment next year.
4. Maintenance and repairs expense is 100% administrative.
Instructions
(a) Journalize the adjusting entries.
(b) Prepare an adjusted trial balance.
(c) Prepare a multiple step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2012.
(d) Journalize the closing entries.
(e) Prepare a post closing trial balance.