The trial balance of Ivanna Fashion Center contained the following accounts at November 30, the end of the company's fiscal year:

Adjustment data:
1. Store supplies on hand total \(\$ 3,500\).
2. Depreciation is \(\$ 9,000\) on the store equipment and \(\$ 7,000\) on the delivery equipment.
3. Interest of \(\$ 11,000\) is accrued on notes payable at November 30 .
Other data: \(\$ 30,000\) of notes payable are due for payment next year \section*{Instructions}

(a) Journalize the adjusting entries.

(b) Prepare \(\mathrm{T}\) accounts for all accounts used in part (a). Enter the trial balance into the \(\mathrm{T}\) accounts and post the adjusting entries.

(c) Prepare an adjusted trial balance.

(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at November 30, 1998

Transcribed Image Text:

IVANNA FASHION CENTER Trial Balance November 30, 1998 Debit Credit Cash $ 16,700 Accounts Receivable 33,700 Merchandise Inventory 45,000 Store Supplies 5,500 Store Equipment 85,000 Accumulated Depreciation -Store Equipment $ 18,000