The trial balance of Buse’s Fashion Center contained the accounts below at November 30, the end of the company’s fiscal year.

BUSE’S FASHION CENTER Trial Balance November 30, 2014 Debit Credit Cash $ 37,700 Accounts Receivable 33,700 Inventory 43,000 Supplies 8,800 Equipment 143,000 Accumulated Depreciation—Equipment $ 41,000 Notes Payable 62,000 Accounts Payable 17,800 Common Stock 80,000 Retained Earnings 30,000 Dividends 12,000 Sales Revenue 757,200 Sales Returns and Allowances 6,200 Cost of Goods Sold 505,400 Salaries and Wages Expense 110,000 Advertising Expense 26,400 Utilities Expense 14,000 Maintenance and Repairs Expense 12,100 Freight-Out 11,700 Rent Expense 24,000

$988,000 $988,000 Adjustment data:

1 Store supplies on hand total $4,000.

2 Depreciation is $14,000 on the store equipment and $6,000 on the delivery equipment.

3 Interest of $4,400 is accrued on notes payable at November 30.

4 Income tax due and unpaid at November 30 is $3,000.

Other data: $24,000 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 amounts 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, 2014.AppendixLO1