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(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 TÂ RIALÂ BÂ ALANCE NÂ OVEMBERÂ 30, 2010 |
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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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Merchandise Inventory |
45,000 |
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Store Supplies |
5,500 |
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Store Equipment |
85,000 |
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Accumulated Depreciation—Store Equipment |
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$ 18,000 |
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Delivery Equipment |
48,000 |
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Accumulated Depreciation—Delivery Equipment |
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6,000 |
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Notes Payable |
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51,000 |
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Accounts Payable |
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48,500 |
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Common Stock |
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90,000 |
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Retained Earnings |
 |
8,000 |
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Sales |
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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 Expense |
140,000 |
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Advertising Expense |
26,400 |
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Utilities Expense |
14,000 |
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Repair Expense |
12,100 |
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Delivery Expense |
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. Store supplies on hand totaled $1,500.
2. Depreciation is $9,000 on the store equipment and $6,000 on the delivery 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. Repair expense is 100% administrative.
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Instructions
(a)Â Journalize the adjusting entries.
(b)Â Prepare an adjusted trial balance.
(c)Â Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2010.
(d)Â Journalize the closing entries.
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(e)Â Prepare a post-closing trial balance.