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

Adjustment data:

1. Supplies on hand totaled $2,000.

2. Depreciation is $11,500 on the equipment.

3. Interest of $4,000 is accrued on notes payable at November 30.

4. Inventory actually on hand is $44,400.

Instructions

a. Enter the trial balance on a worksheet, and complete the worksheet.

b. Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet as of November 30, 2020. Notes payable of $20,000 are due in January 2021.

c. Journalize the adjusting entries.

d. Journalize the closing entries.

e. Prepare a post-closing trial balance.

Transcribed Image Text:

VALDEZ FASHION CENTER Trial Balance November 30, 2020 Debit Credit $ 8,700 Cash 30,700 Accounts Receivable Inventory 44,700 Supplies 6,200 Equipment 133,000 $ 28,000 Accumulated Depreciation-Equipment Notes Payable 51,000 Accounts Payable 48,500 Common Stock 50,000 Retained Earnings 40,000 Dividends 12,000 Sales Revenue 755,200 Sales Returns and Allowances 8,800 Cost of Goods Sold 497,400 Salaries and Wages Expense 140,000 Advertising Expense 24,400 Utilities Expense 14,000 Maintenance and Repairs Expense 12,100 Freight-Out 16,700 Rent Expense 24.000 $972,700 $972,700 Totals