Problem 3-4 The trial balance of Blossom Fashion Center contained the following
ID: 2332313 • Letter: P
Question
Problem 3-4
The trial balance of Blossom Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
BLOSSOM FASHION CENTER
TRIAL BALANCE
NOVEMBER 30, 2017
Debit
Credit
$1,004,980
$1,004,980
Adjustment data:
Other data:
1- Journalize the closing entries
2-Prepare a post-closing trial balance.
BLOSSOM FASHION CENTER
TRIAL BALANCE
NOVEMBER 30, 2017
Debit
Credit
Cash $33,770 Accounts Receivable 37,390 Inventory 48,690 Supplies 9,190 Equipment 140,380 Accumulated Depreciation-Equipment $26,760 Notes Payable 54,690 Accounts Payable 52,190 Common Stock 93,690 Retained Earnings 11,690 Sales Revenue 765,960 Sales Returns and Allowances 4,200 Cost of Goods Sold 495,400 Salaries and Wages Expense 138,080 Advertising Expense 27,780 Utilities Expenses 15,920 Maintenance and Repairs Expense 12,100 Delivery Expense 16,700 Rent Expense 25,380 Totals$1,004,980
$1,004,980
Explanation / Answer
Answer
Unadjusted Trial balance
Adjustments
Adjusted Trial balance
NOVEMBER 30, 2017
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 33,770.00
$ 33,770.00
Accounts Receivable
$ 37,390.00
$ 37,390.00
Inventory
$ 48,690.00
$ 48,690.00
Supplies
$ 9,190.00
$ 4,000.00
$ 5,190.00
Equipment
$ 140,380.00
$ 140,380.00
Accumulated Depreciation-Equipment
$ 26,760.00
$ 17,070.00
$ 43,830.00
Notes Payable
$ 54,690.00
$ 54,690.00
Interest Payable
$ 10,440.00
$ 10,440.00
Accounts Payable
$ 52,190.00
$ 52,190.00
Common Stock
$ 93,690.00
$ 93,690.00
Retained Earnings
$ 11,690.00
$ 11,690.00
Sales Revenue
$ 765,960.00
$ 765,960.00
Sales Returns and Allowances
$ 4,200.00
$ 4,200.00
Cost of Goods Sold
$ 495,400.00
$ 495,400.00
Salaries and Wages Expense
$ 138,080.00
$ 138,080.00
Advertising Expense
$ 27,780.00
$ 27,780.00
Utilities Expenses
$ 15,920.00
$ 15,920.00
Maintenance and Repairs Expense
$ 12,100.00
$ 12,100.00
Delivery Expense
$ 16,700.00
$ 16,700.00
Depreciation Expense - Equipment
$ 17,070.00
$ 17,070.00
Interest Expense
$ 10,440.00
$ 10,440.00
Supplies expense
$ 4,000.00
$ 4,000.00
Rent Expense
$ 25,380.00
$ 25,380.00
Totals
$ 1,004,980.00
$ 1,004,980.00
$ 31,510.00
$ 31,510.00
$ 1,032,490.00
$ 1,032,490.00
Calculation of Net Income (Loss)
Sales Revenue
$ 765,960.00
Sales Returns and Allowances
$ (4,200.00)
Net Sales
$ 761,760.00
Cost of Goods Sold
$ 495,400.00
Gross Profits
$ 266,360.00
Operating & Ither expenses:
Salaries and Wages Expense
$ 138,080.00
Advertising Expense
$ 27,780.00
Utilities Expenses
$ 15,920.00
Maintenance and Repairs Expense
$ 12,100.00
Delivery Expense
$ 16,700.00
Depreciation Expense - Equipment
$ 17,070.00
Interest Expense
$ 10,440.00
Supplies expense
$ 4,000.00
Rent Expense
$ 25,380.00
Total expenses
$ 267,470.00
Net Income (Loss)
$ (1,110.00)
Closing entry no.
Accounts title
Debit
Credit
(a)
Sales Revenue
$ 765,960.00
Income Summary
$ 765,960.00
(Revenues account with credit balance, closed)
(b)
Income Summary
$ 767,070.00
Sales Returns and Allowances
$ 4,200.00
Cost of Goods Sold
$ 495,400.00
Salaries and Wages Expense
$ 138,080.00
Advertising Expense
$ 27,780.00
Utilities Expenses
$ 15,920.00
Maintenance and Repairs Expense
$ 12,100.00
Delivery Expense
$ 16,700.00
Depreciation Expense - Equipment
$ 17,070.00
Interest Expense
$ 10,440.00
Supplies expense
$ 4,000.00
Rent Expense
$ 25,380.00
(Expense accounts and other debit balance account closed)
(c )
Retained Earnings
$ 1,110.00
Income Summary
$ 1,110.00
(Net Loss balance of Income Summary closed)
Post Closing Trial balance
NOVEMBER 30, 2017
Debit
Credit
Cash
$ 33,770.00
Accounts Receivable
$ 37,390.00
Inventory
$ 48,690.00
Supplies
$ 5,190.00
Equipment
$ 140,380.00
Accumulated Depreciation-Equipment
$ 43,830.00
Notes Payable
$ 54,690.00
Interest Payable
$ 10,440.00
Accounts Payable
$ 52,190.00
Common Stock
$ 93,690.00
Retained Earnings
$ 10,580.00
Totals
$ 265,420.00
$ 265,420.00
Unadjusted Trial balance
Adjustments
Adjusted Trial balance
NOVEMBER 30, 2017
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$ 33,770.00
$ 33,770.00
Accounts Receivable
$ 37,390.00
$ 37,390.00
Inventory
$ 48,690.00
$ 48,690.00
Supplies
$ 9,190.00
$ 4,000.00
$ 5,190.00
Equipment
$ 140,380.00
$ 140,380.00
Accumulated Depreciation-Equipment
$ 26,760.00
$ 17,070.00
$ 43,830.00
Notes Payable
$ 54,690.00
$ 54,690.00
Interest Payable
$ 10,440.00
$ 10,440.00
Accounts Payable
$ 52,190.00
$ 52,190.00
Common Stock
$ 93,690.00
$ 93,690.00
Retained Earnings
$ 11,690.00
$ 11,690.00
Sales Revenue
$ 765,960.00
$ 765,960.00
Sales Returns and Allowances
$ 4,200.00
$ 4,200.00
Cost of Goods Sold
$ 495,400.00
$ 495,400.00
Salaries and Wages Expense
$ 138,080.00
$ 138,080.00
Advertising Expense
$ 27,780.00
$ 27,780.00
Utilities Expenses
$ 15,920.00
$ 15,920.00
Maintenance and Repairs Expense
$ 12,100.00
$ 12,100.00
Delivery Expense
$ 16,700.00
$ 16,700.00
Depreciation Expense - Equipment
$ 17,070.00
$ 17,070.00
Interest Expense
$ 10,440.00
$ 10,440.00
Supplies expense
$ 4,000.00
$ 4,000.00
Rent Expense
$ 25,380.00
$ 25,380.00
Totals
$ 1,004,980.00
$ 1,004,980.00
$ 31,510.00
$ 31,510.00
$ 1,032,490.00
$ 1,032,490.00
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