Question

Problem 5-3A (Part Level Submission) The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2019, the following accounts appeared in two of its trial balances. Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $25,200 $25,200 Inventory $29,000 $29,000 Accounts Receivable 30,500 30,500 Notes payable 37,000 37,000 Accumulated Depr.—Equipment 34,000 45,000 Prepaid Insurance 10,500 3,500 Cash 26,000 26,000 Property Tax Expense 2,500 Common Stock 40,000 40,000 Property Taxes Payable 2,500 Cost of Goods Sold 507,000 507,000 Rent Expense 15,000 15,000 Dividends 10,000 10,000 Retained Earnings 61,700 61,700 Freight-Out 6,500 6,500 Salaries and Wages Expense 96,000 96,000 Equipment 146,000 146,000 Sales Commissions Expense 6,500 11,000 Depreciation Expense 11,000 Sales Commissions Payable 4,500 Insurance Expense 7,000 Sales Returns and Allowances 8,000 8,000 Interest Expense 6,400 6,400 Sales Revenue 700,000 700,000 Interest Revenue 8,000 8,000 Utilities Expense 8,500 8,500

Prepare a balance sheet. Notes payable are due in 2022. (List Current Assets in order of liquidity.)

Answer 1

for formulas and calculations, refer to the image below -