VALDEZ FASHION CENTER Trial Balance November 30, 2017 Debit Credit $ 8,300 31,10
ID: 2395623 • Letter: V
Question
VALDEZ FASHION CENTER
Trial Balance
November 30, 2017
Debit
Credit
$ 8,300
31,100
42,900
6,100
132,000
$ 30,000
53,500
34,200
55,000
11,000
755,200
8,600
497,300
139,800
24,300
13,700
12,100
16,600
24,100
$967,900
$967,900
. The trial balance of Valdez Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.VALDEZ FASHION CENTER
Trial Balance
November 30, 2017
Debit
Credit
Cash$ 8,300
Accounts Receivable31,100
Inventory42,900
Supplies6,100
Equipment132,000
Accumulated Depreciation—Equipment$ 30,000
Notes Payable53,500
Accounts Payable34,200
Common Stock55,000
Retained Earnings 40,000 Dividends11,000
Sales Revenue755,200
Sales Returns and Allowances8,600
Cost of Goods Sold497,300
Salaries and Wages Expense139,800
Advertising Expense24,300
Utilities Expense13,700
Maintenance and Repairs Expense12,100
Freight-Out16,600
Rent Expense24,100
Totals$967,900
$967,900
Adjustment data:
1. Supplies on hand totaled $2,500. 2. Depreciation is $13,000 on the equipment. 3. Interest of $4,000 is accrued on notes payable at November 30. . 4. Inventory actually on hand is $42,200.
a) Complete the worksheet.
b) Prepare a multiple-step income statement for the year.
c) Prepare an owner's equity statement for the year.
d) Prepare a classified balance sheet as of November 30, 2017. Notes payable of $20,500 are due in January 2018.
e) Journalize the adjusting entries.
f) Journalize the closing entries.
g) Prepare a post-closing trial balance.
Explanation / Answer
a) Adjusted Trial Balance
b) Income statement
Sales Revenue 755,200
less: Sales Returns and Allowances 8,600
net sales 746600
less: Cost of Goods Sold[497,300 + 700] 498000
Gross profit 248600
less: Supplies expense 3600
Depreciation 13,000
Interest 4,000
Salaries and Wages Expense 139,800
Advertising Expense 24300
Utilities Expense 13700
Maintenance and Repairs Expense 12100
Freight-Out 16600
Rent Expense 24100 251200
Net income (2600)
c) Owner' s equity
Beginning balance of Retained Earnings = 40000
add: Net income = (2600)
less: Dividend = 11000
Ending balance of Retained Earnings = $26400
e)
f)
Dr Cr Cash 8,300 Accounts Receivable 31100 Inventory 42,200 Supplies 2500 supplies expense 3600 Equipment 132,000 Accumulated Depreciation—Equipment 43000 Depreciation expense 13000 Notes Payable 53500 Accounts Payable 34200 Common Stock 55000 Retained Earnings 40000 Dividends 11000 Sales Revenue 755,200 Sales Returns and Allowances 8600 Cost of Goods Sold 498000 Salaries and Wages Expense 139,800 Advertising Expense 24,300 Utilities Expense 13,700 Maintenance and Repairs Expense 12,100 Freight-Out 16,600 Rent Expense 24,100 Interest expense 4000 Interest payable 4000 984900 984900Related Questions
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