Question

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		$ 8,100
Accounts Receivable		28,700
Inventory		44,700
Supplies		6,100
Equipment		132,000
Accumulated Depreciation—Equipment				$ 26,000
Notes Payable				51,000
Accounts Payable				33,600
Common Stock				60,000
Retained Earnings				40,000
Dividends		10,500
Sales Revenue				755,600
Sales Returns and Allowances		8,700
Cost of Goods Sold		497,100
Salaries and Wages Expense		140,000
Advertising Expense		24,200
Utilities Expense		13,600
Maintenance and Repairs Expense		12,100
Freight-Out		16,400
Rent Expense		24,000
Totals		$966,200		$966,200

Adjustment data:

1.		Supplies on hand totaled $2,400.
2.		Depreciation is $13,500 on the equipment.
3.		Interest of $4,000 is accrued on notes payable at November 30.
4.		Inventory actually on hand is $44,300.

A: Journalize the adjusting entries.

B: Journalize the closing entries.

C: Prepare a classified balance sheet as of November 30, 2017. Notes payable of $21,000 are due in January 2018.

Answer 1

		$	$
A           1	Supplies expenses	3,700
	Supplies		3,700
2	Depreciation Expense	13,500
	Accumulated Depreciation		13,500
3	Interest Expense	11,000
	Interest Payable		11,000
4	Cost of goods sold	400
	Inventories		400
B
Closing Entries
		$	$
	Sales Revenue(755600-8700)	7,46,900
	Income Summary		7,46,900
	Income Summary	7,56,000
	Salary expenses		1,40,000
	Rent expenses		24,000
	Depreciation expenses		13,500
	Supplies Expenses		3,700
	Utilities expenses		13,600
	Cost of Goods Sold		4,97,500
	Advertising Expense		24,200
	Maintenance and Repairs Expense		12,100
	Freight-Out		16,400
	Interetst Expenses		11,000
C	VALDEZ FASHION CENTER
	Balancesheet
	Nov 30 2017
	Current assets
	Cash	8,100
	Accounts receivables	28,700
	Inventory	44,300
	Supplies	2,400
	Total Current Assets		83,500
	Property Plant and equipment
	Equipment	1,32,000
	Accumulated Depreciation	39,500	92,500
	Total Assets		1,76,000
	Liabilities and Owner's Equity
	Current liabilities
	Notes payable (due next year)	21,000
	Account payable	33,600
	Interest payable	11,000
	Total current liabilities		65,600
	Long-term liabilities
	Notes payable		30,000
	Total Liabilities		95,600
	Owner's equity
	Common stock	60,000
	Retained Earnings	20,400	80,400
	Total Liabilities and Owner's Equity		1,76,000
	Retained Earnings
	Opening Balance	40,000
	Less Loss	9,100
	Less Dividends	10,500
	Closing balance	20,400