he trial balance of Bellemy Fashion Center contained the following accounts at N
ID: 2489123 • Letter: H
Question
he trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
BELLEMY FASHION CENTER
TRIAL BALANCE
NOVEMBER 30, 2014
Debit
Credit
$1,002,760
$1,002,760
Adjustment data:
Other data:
BELLEMY FASHION CENTER
TRIAL BALANCE
NOVEMBER 30, 2014
Debit
Credit
Cash $33,400 Accounts Receivable 37,020 Inventory 48,320 Supplies 8,820 Equipment 139,640 Accumulated Depreciation-Equipment $26,760 Notes Payable 54,320 Accounts Payable 51,820 Common Stock 93,320 Retained Earnings 11,320 Sales Revenue 765,220 Sales Returns and Allowances 4,200 Cost of Goods Sold 495,400 Salaries and Wages Expense 138,920 Advertising Expense 27,780 Utilities Expenses 15,080 Maintenance and Repairs Expense 12,100 Delivery Expense 16,700 Rent Expense 25,380 Totals$1,002,760
$1,002,760
Explanation / Answer
Adjustment entries 1) Supplies expense Dr 4000 Supplies Cr 4000 ( To record supplies expense) 2) Depriciation - equipment Dr 17070 Accumulated Depriciation - equipment Cr 17070 ( To record depriciation for the year) 3) Interest Expense Dr 15380 Interes accrued Cr 15380 ( To record interest expense) Income Statement Sales Revenue 765220 Less : sales return and allowance 4200 Net Sales 761020 Less : Cost of goods sold 495400 Gross Profit 265620 Less Selling expenses Salaries and wages ( 138920 * 70%) 97244 Adverising expense 27780 Utilities expense ( 15080*80%) 12064 Delivery expense 16700 Rent ( 25380 * 80%) 20304 174092 Aministrative expenses Salaries and wages ( 138920 * 30%) 41676 Utilities expense ( 15080*20%) 3016 Rent ( 25380 * 20%) 5076 Maintenance and repairs 12100 Depriciation 17070 Supplies 4000 Interest expese 15380 98318 Net operating income/(loss) -6790 Balance Sheet Current Assets Cash 33400 Accounts receivable 37020 Inventory 48320 Supplies ( 8820-4000) 4820 Total current asset 123560 Fixed Asset Equipment 139640 Less accumulated depriciation ( 26760+17070) 43830 Net equipment 95810 Total Assets 219370 Current liablities Notes payable 54320 Add : accrued interest 15380 69700 Accounts payable 51820 Total current libility 121520 Common stock 93320 Retained earnings 11320 Less : Net loss -6790 Total stockholders equity 97850 Total liabilities and stock holders equity 219370
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