ercrombie & Fitch Co., a Delaware corporation, is principally engaged in the purchase, distribution and sale of en's, women's and kids' casual apparel. The Company's retail activities are conducted under the Abercrombie & ch and "Abercrombie" trade names through retail stores and a magazine/catalogue bearing the Company name. erchandise is targeted to appeal to customers in specialty markets who have distinctive consumer characteristics. eaming Objectives Record basic transactions, adjusting journal entries, and closing entries. Prepare a balance sheet and income statement. efer to the fiscal year 1999 financial statements of Abercrombie & Fitch Co. Note: "Fiscal year 1999" fers to the year that began on February 1, 1998 and ended on January 30, 1999. Process Open T-accounts for each balance sheet and income statement line item (i.e., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts; for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 balance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 1. 2. 3. 4. 45 5. 6. 7. 8. 9. 10. 11. Inventory costing $481,918 was purchased on account during the year. Store Supplies costing $1,000 were purchased on account during the year. Sales of $815,804 were made. Of these, $15,804 were on account. The cost of merchandise sold was $465,000. The company collected cash of $13,398 from its customers for sales previously recorded as accounts receivable. Cash of $514,114 was used to pay suppliers for goods, supplies, and property and equipment previously purchased on account. The company collected $23,785 from the Limited in satisfaction of amounts owed by the Limited to A&F.. Cash of $50,000 was used to repay principal on long-term debt. Property and equipment were acquired on account (accounts payable) for $39,987. The company paid $908 for shares of its own common stock. This is known as treasury stock. It is recorded at cost as a debit in the owners' equity section of the balance sheet. The following represents a single composite journal entry for all remaining transactions during the year. Record the entry In the appropriate accounts: Dr. Dr. Dr. Dr. Dr. 000000000000 Other Current Assets General, Admin., and Store Operating Expense Provision for Income Taxes (Expense) Deferred Income Taxes Other assets Cash Income Taxes Payable Other Long-Term Liabilities Interest Income Accrued Expenses Cr. Cr. Cr. Cr. Cr. Cr. Explanation: to record all other activity for fiscal 1999 Common Stock Paid-in Capital TOTAL 400 150,652 68,040 6,978 631 151,264 17,736 3,327 3,144 25,054 6 26,170 226.701 226.701 Prepare an unadjusted trial balance as at January 30, 1999 using the ending balances in the T-accounts obtained in part a. Abercrombie & Fitch Co.-Transactions and Financial Statements