(Financial Statements, Adjusting and Closing Entries) The trial balance of Becky Bishop 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 $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:
1. Salaries expense is 70% selling and 30% administrative.
2. Rent expense and utilities expense are 80% selling and 20% administrative.
3. $30,000 of notes payable are due for payment next year.
4. Repair expense is 100% administrative.
Instructions

(a) Journalize the adjusting entries.

(b) Enter the trial balance on a work sheet and complete the work sheet.

(c) Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2005.

(d) Journalize the closing entries.

(e) Prepare a post-closing trial balance.

Transcribed Image Text:

BECKY BISHOP FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2005 Debit Credit Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment $ 26,700 33,700 45,000 5,500 85,000 Accumulated Depreciation-Store Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment $ 18,000 48,000 6,000 Notes Payable 51,000 Accounts Payable 48,500 Common Stock 90,000 Retained Earnings 8,000 Sales 757,200 Sales Returns and Allowances 4,200 Cost of Goods Sold 497,400 Salaries Expense 140,000 Advertising Expense 26,400 Utilities Expense Repair Expense Delivery Expense Rent Expense 14,000 12,100 16,700 24,000 $978,700 $978,700