The trial balance of Mr. Eko Fashion Center contained the following accounts at November 30, the end
Question:
The trial balance of Mr. Eko Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
MR. EKO FASHION CENTER | ||
Trial Balance | ||
November 30, 2012 | ||
Debit | Credit | |
Cash | $ 8,700 | |
Accounts Receivable | 30,700 | |
Inventory | 44,700 | |
Supplies | 6,200 | |
Equipment | 133,000 | |
Accumulated Depreciation—Equipment | $ 28,000 | |
Notes Payable | 51,000 | |
Accounts Payable | 48,500 | |
Owner’s Capital | 90,000 | |
Owner’s Drawings | 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 | |
Totals | $972,700 | $972,700 |
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 an owner’s equity statement for the year, and a classified balance sheet as of November 30, 2012. Notes payable of $20,000 are due in January 2013.
c) Journalize the adjusting entries.
d) Journalize the closing entries.
e) Prepare a post-closing trial balance.
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso