The trial balance of Slum Dog Fashion Centre Inc., a private company following ASPE, contained the following accounts at November 30, the company?s fiscal year end:

Adjustment data:

1. Supplies on hand totalled $3,100.

2. Depreciation is $40,000 on the store equipment and $30,000 on the delivery trucks.

3. Interest of $9,000 is accrued on notes payable at November 30.

Additional information:

1. Salaries and wages expense is 60% selling and 40% administrative.

2. Rent expense and utilities expense are 90% selling and 10% administrative.

3. Of the notes payable, $35,000 is due for payment next year.

4. Repairs and maintenance expense is 100% administrative.

5. Expenses pertaining to travel, advertising and supplies are 100% selling.

6. The income tax rate for the company is 20%. No taxes have been accrued or paid during the year.

Instructions

a. Enter the trial balance on a work sheet and complete the work sheet.

b. Prepare a multiple-step income statement and statement of retained earnings for the year, and a classified statement of financial position as at November 30, 2020. Look to Chapter 4 to see what a multiple-step income statement is.

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Slum Dog Fashion Centre Inc. Trial Balance November 30, 2020 Debit $ 29,200 Credit Cash Accounts receivable Inventory 82,000 105,000 Supplies Equipment 225,000 $ 86,000 Accumulated depreciation-equipment Vehicles $ 128,000 Accumulated depreciation-vehicles Notes payable Accounts payable Common shares 39,000 85,000 78,500 300,000 38,000 950,200 Retained earnings Sales revenue Sales returns and allowances Cost of goods sold Salaries and wages expense Advertising expense Utilities expense Repairs and maintenance expense Travel expense Rent expense 24,200 611,500 150,000 46,400 24,000 32,100 46,700 64,000 $1,576,700 $1,576,700