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

Adjustment data:

1. Store supplies on hand totaled $2,500.

2. Depreciation is $9,000 on the store equipment and $5,000 on the delivery equipment.

3. Interest of $4,080 is accrued on notes payable at November 30.

4. Merchandise 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, 2010. Notes payable of $30,000 are due in January 2011.

(c) Journalize the adjusting entries.

(d) Journalize the closing entries.

(e) Prepare a post-closing trial balance.

Transcribed Image Text:

TERRY MANNING FASHION CENTER Trial Balance November 30, 2010 Debit Credit $ 28,700 Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment Accumulated Depreciation-Store Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment Notes Payable Accounts Payable Terry Manning. Capital Terry Manning. Drawing 30,700 44.700 6,200 85,000 $ 22,000 48,000 6,000 51,000 48,500 110,000 12,000 755,200 Sales Sales Returns and Allowances 8,800 Cost of Goods Sold 497,400 Salaries Expense Advertising Expense Utilities Expense Repair Expense Delivery Expense Rent Expense 140,000 24,400 14,000 12,100 16,700 24.000 $992,700 $992,700 Totals