Acc280 Financial Accounting: P5-6B The trial balance of Calhoun Fashion Center

Acc280 Financial Accounting
P5-6B, Journalize, post, and prepare adjusted trial balance and financial statements.
The trial balance of Calhoun Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
Trial Balance
November 30, 2010
Debit Credit
Cash $37,700
Accounts Receivable 33,700
Merchandise Inventory 43,000
Store Supplies 8,800
Store Equipment 105,000
Accum Deprec—Store Equipment $35,000
Delivery Equipment 38,000
Accum Deprec—Delivery Equipment 6,000
Notes Payable 65,000
Accounts Payable 19,800
Common Stock 80,000
Retained Earnings 30,000
Dividends 12,000
Sales 757,200
Sales Returns and Allowances 6,200
Cost of Goods Sold 505,400
Salaries Expense 110,000
Advertising Expense 26,400
Utilities Expense 14,000
Repair Expense 12,100
Delivery Expense 16,700
Rent Expense 24,000
$993,000 $993,000

Adjustment data:
1. Store supplies on hand total $3,500.
2. Depreciation is $14,000 on the store equipment and delivery equipment.
3. Interest of $5,000 is accrued on notes payable at November 30.
Income tax due and unpaid at November 30 is $3,000.
Other data: $30,000 of the notes payable are payable next year.

(a) Journalize the adjusting entries.
(b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at November 30, 2010.
Powered by