The trial balance of Calhoun Fashion Center contained the following accounts at November 30, the end of the company's fiscal year.

Adjustment data:
1. Store supplies on hand total $3,500.
2. Depreciation is $14,000 on the store equipment and $6,000 on the delivery equipment.
3. Interest of $5,000 is accrued on notes payable at November 30.
4. Income tax due and unpaid at November 30 is $3,000.
Other data: $30,000 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 30,2010.

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CALHOUN FASHION CENTER Trial Balance November 30, 2010 Debit Credit 37,700 33,700 43,000 8,800 105,000 Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Sales Sales Returns and Allowances Cost of Goods Sold Salaries Expense Advertising Expense Utilities Expense Repair Expense Delivery Expense Rent Expense 35,000 38,000 6,000 65,000 19,800 80,000 30,000 12,000 757,200 6,200 505,400 110,000 26,400 14,000 12,100 16,700 24,000 $993,000 $993,000