Question

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
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

Adjustment data:

1.		Supplies on hand totaled $5,190.
2.		Depreciation is $17,070 on the equipment.
3.		Interest of $10,440 is accrued on notes payable at November 30.

Other data:

1.		Salaries expense is 70% selling and 30% administrative.
2.		Rent expense and utilities expenses 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.

1- Prepare an adjusted trial balance.

2- Prepare a multiple-step income statement for the year.

3- Prepare retained earnings statement for the year.

4- Prepare a classified balance sheet as of November 30, 2017. (List current assets in order of liquidity.)

5- Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

6- Prepare a post-closing trial balance.

Answer 1

1) Adjusted Trial Balance
Particulars				Debit	Credit
Cash				$        33,770.00
Accounts Recievable				$        37,390.00
Inventory				$        43,500.00
Supplies				$          9,190.00		Adjustment for supplies
Equipment				$      140,380.00
Accumulated Depreciation					$        43,830.00	Adjustment for Depreciation
Notes Payable					$        54,690.00
Accrued Interest					$        10,440.00	Interest adjustment
Common Stock					$        93,690.00
Retained Earnings					$        11,690.00
Accounts Payable					$        52,190.00
Sales Revenue					$      765,960.00
Sales Return and Allowances				$          4,200.00
Cost of Goods Sold				$      495,400.00
Salaries and Wages Expenses				$      138,080.00
Advertisement Expenses				$        27,780.00
Utilities Expenses				$        15,920.00
maintenance and Repairs expenses				$        12,100.00
Depreciation Expenses				$        17,070.00
Interest Payale				$        10,440.00
Supplies Expense				$          5,190.00
Delivery Expenses				$        16,700.00
Rent Expenses				$        25,380.00
Total				$ 1,032,490.00	$ 1,032,490.00
2) Multi Step Income Statement
Sales				$      765,960.00
Less: Sales Return				$        (4,200.00)	$      761,760.00
Cost of Goods Sold					$   (495,400.00)
Gross Profit					$      266,360.00
Operating Expenses
	Selling Expenses
		Advertisement Expenses		$        27,780.00
		Salary		$        96,656.00
		Rent		$        20,304.00
		Utility Expenses		$        12,736.00
		Delivery Expenses		$        16,700.00
	Administrative Expenses
		Salary		$        41,424.00
		Rent		$          5,076.00
		Utility Expenses		$          3,184.00
		Supplies Expense		$          5,190.00
	Maintainence expenses			$        12,100.00
	Depreciation			$        17,070.00
	Interest Payable			$        10,440.00	$      268,660.00
Net Income					$        (2,300.00)
3) Retained Earnings Statements
	Opening Balance			$        11,690.00
	Less: Loss			$        (2,300.00)
	Closing Balance			$          9,390.00
4) Balance Sheet
Liabilities			Amount	Asset		Amount
Common Stock			$        93,690.00	Equiment	$      140,380.00
Retained Earning			$          9,390.00	Less: Ac Dep	$      (43,830.00)	$        96,550.00
Notes Payable			$        54,690.00	Accounts Recievable		$        37,390.00
Accrued Interest			$        10,440.00	Inventory		$        43,500.00
Accounts Payable			$        52,190.00	Supplies		$          9,190.00
				Cash		$        33,770.00
Total			$      220,400.00	Total		$      220,400.00