The trial balance of Chenot Apparel, Inc., (at the top of page 210) pertains to December 31 of the current year.

Preparing a merchandiser's accounting work sheet

(Obj. 4)

Additional data at December 31, 19XX:

a. Rent expense for the year, \(\$ 10,200\).

b. Store fixtures have an estimated useful life of 10 years and are expected to be worthless when they are retired from service.

c. Accrued salaries at December \(31, \$ 900\).

d. Accrued interest expense at December \(31, \$ 360\).

Using accounting work sheet data to prepare financial statements and evaluate the business

(Obj. 3, 5, 6)

e. Inventory on hand at December \(31, \$ 73,200\).

\section*{Required}
Complete Chenot's accounting work sheet for the year ended December 31 of the current year.
Journalizing the adjusting and closing entries of a merchandising business (Obj. 4)

Transcribed Image Text:

CHENOT APPAREL, INC. TRIAL BALANCE DECEMBER 31, 19XX Cash. $ 1,270 Accounts receivable. 4,430 Inventory 73,900 Prepaid rent. 4,400 Store fixtures...... 22,100 Accumulated depreciation... $ 8,380 Accounts payable.. 6,290 Salary payable. Interest payable.. Note payable, long-term. 18,000 Common stock. 12,000 Retained earnings.. 43,920 Dividends... 39,550 Sales revenue 170,150 Cost of goods sold. 67,870 Salary expense... 24,700 Rent expense. 7,700 Advertising expense. 4,510 Utilities expense. 3,880 Depreciation expense. Insurance expense. 2,770 Interest expense. 1,660 Total. $258,740 $258,740