The trial balance of Dorothys Young Fashions contained the following account balances on July 31, 2018, the
Question:
The trial balance of Dorothy’s Young Fashions contained the following account balances on July 31, 2018, the end of the company’s fiscal year:
Dorothy's Young Fashions | |||
Trial Balance | |||
July 31, 2018 | |||
Debit | Credit | ||
Cash | $14,685 | ||
Accounts Receivable | 18,535 | ||
Merchandise Inventory | 24,750 | ||
Store Supplies | 3,025 | ||
Store Equipment | 46,750 | ||
Accumulated Depreciation - Store Equipment | $9,900 | ||
Delivery Equipment | 26,400 | ||
Accumulated Depreciation - Delivery Equipment | 3,300 | ||
Notes Payable | 28,050 | ||
Accounts Payable | 26,675 | ||
Common Stock | 49,500 | ||
Retained Earnings | 4,400 | ||
Sales | 416,460 | ||
Sales Returns and Allowances | 2,310 | ||
Cost of Goods Sold | 273,570 | ||
Salaries Expense | 77,000 | ||
Advertising Expense | 14,520 | ||
Utilities Expense | 7,700 | ||
Repair Expense | 6,655 | ||
Delivery Expense | 9,185 | ||
Rent Expense | 13,200 | ||
$538,285 | $538,285 |
Adjusting Information
- Stores Supplies on hand totaled $1,925.
- Depreciation was $4,950 on the Store Equipment and $3,850 on the Delivery Equipment.
- Interest of $6,050 is accrued on Notes Payable at July 31, 2018.
Additional Information
- Salaries Expense is 70% selling expense and 30% administrative expense.
- Rent Expense and Utilities Expense are allocated 80% to selling expenses and 20% to administrative expenses.
- $16,500 of the Notes Payable will be due for payment during the next year.
- Repair Expense is 100% administrative.
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine