The trial balance of Buses Fashion Center contained the accounts below at November 30, the end of

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.

Transcribed Image Text:

BUSE'S FASHION CENTER Trial Balance November 30, 2014 Debit Credit 37,700 33,700 43,000 1 Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Cost of Goods Sold Salaries and Wages Expense Advertising Expense Utilities Expense Maintenance and Repairs Expense Freight-Out Rent Expense 8,800 143,000 $41,000 62,000 17,800 80,000 12,000 757,200 6,200 505,400 110,000 26,400 14,000 12,100 11,700 24,000 $988,000 $988,000