Question

The trial balance of Buse’s Fashion Center contained the accounts below at November 30, the end of the company’s fiscal year.


Adjustment data:
1. Store supplies on hand total $4,000.
2. Depreciation is $14,000 on the store equipment and $6,000 on the delivery equipment.
3. Interest of $4,400 is accrued on notes payable at November 30.
4. Income tax due and unpaid at November 30 is $3,000.
Other data: $24,000 of notes payable are due for payment next year.

Instructions
(a) Journalize the adjusting entries.
(b) Prepare 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 30,2014.


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  • CreatedApril 07, 2014
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