The unadjusted trial balance of Fashion Centre Ltd. contained the following accounts at November 30, the company's fiscal year end:

Additional information and adjustment data:
1. The 12-month insurance policy was purchased on August 1.
2. There is $950 of supplies on hand at November 30.
3. Depreciation expense for the year is $5,360 on the equipment.
4. Salaries of $1,210 are unpaid at November 30.
5. Accrued interest expense at November 30 is $175.
6. Of the unearned revenue, $2,400 has been earned by November 30. The cost of goods sold incurred in earning this sales revenue is $1,560.
7. Of the bank loan payable, $5,000 is to be paid in the next year; the remainder is long-term.
8. Income tax of $1,100 is due and unpaid.
9. A physical count of inventory indicates $25,000 on hand at November 30.
10. Common shares of $5,000 were issued during the year.
|Instructions
(a) Prepare T accounts and enter the trial balance amounts.
(b) Record and post the adjusting entries, assuming the company adjusts its accounts annually.
(c) Prepare an adjusted trial balance at November 30.
(d) Prepare a multiple-step income statement, statement of changes in equity, and statement of financial position for the year.

Transcribed Image Text:

FASHION CENTRE LTD. Trial Balance November 30, 2015 Credit $22,000 Merchandise inventory Long-term investments Accumulated depreciation-equipment revenue 1 1 Rent expense Advertising expense Income tax expense $378,020