The trial balance of Shakira 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.
Instructions

(a) Journalize the adjusting entries.

(b) Prepare T accounts for all accounts used in part (a). Enter the trial balance into the 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, 2001.

Transcribed Image Text:

SHAKIRA FASHION CENTER Trial Balance November 30, 2001 Debit Credit Cash $ 36,700 Accounts Receivable 33,700 Merchandise Inventory 45,000 Store Supplies 5,500 Store Equipment 85,000 Accumulated Depreciation-Store Equipment $ 38,000 Delivery Equipment 38,000 Accumulated Depreciation-Delivery Equipment 6,000 Notes Payable 41,000