Financial Statements and Closing Entries Now that you have reviewed and corrected most of the steps in the accounting cycle, it is time to complete the cycle with the last steps. For this weeks assingment, please prepare the multiple-step income statement, statement of owners equity, and classified balance sheet. Prepare the closing entries and the post-closing trial balance. For this current exercise, you should use the information completed in prior weeks. Prepare the income statement, where net income will be carried through to the statement of owners equity as one of the adjustments to the final balance in the equity account. You will then need to prepare the balance sheet, where you will outline and show the updated owners equity balance.

• Prepare a Nov (xxxx) multiple-step income statement, a Nov (xxxx) statement of owner's equity, and a Nov 30, (xxxx), classified balance sheet.

• Prepare and post the closing entries to the general ledger. Also, prepare a post-closing trial balance.

Credit Date Nov Account Titles and Explanation Sales Revenue Income Summary Close sales revenue to Income Sumaary 30 Debit 292,617 292,617 Nov 30 Income Summary Sales disc returns and allowances 133,119 Close contra accounts to Income Summary Nov 30 75,058 (3) Income Summary Purchase Discount Cost of Goods Sold Depreciation expense-Automobiles Store supplies expense Office supplies expense Insurance expense Property Tax Expense Rent expense Salaries expense- Sales Salaries expense-Office Utilities expense-Electricity Close COGS & expenses to Income Summary 16,800 3,105 1,373 5,100 1,000 8,968 16,165 19,305 3,242 Nov 30 84,440 Income Summary Owner, Capital Close Income / Summary to Capital 84,440 Nov 30 10,500 Owner, Capital Owner, Withdrawls Close owner withdrawals to Capital Account 10,500 462,615 462,615 Name Post Closing Trial Balance Fitchburg LLC Post-Closing Trial Balance November 30, 20XX Credit Debit $121,057 45,024 96,233 2,100 132,000 $ 42,050 Cash Accounts receivable Merchandise inventory Prepaid Insurance Automobiles accumulated depreciation Office equipment accumulated depreciation Store equipment accumulated depreciation Accounts Payable Owner, Capital 10,649 658 16,580 2,268 190,844 187,823 Totals $423,643 $423,643 $121,688 45, 104 96,992 2,100 Fitchburg LLC Balance Sheet November 30, 20XX Assets: Current assets: Cash Accounts receivable Merchandise inventory Prepaid Insurance Total current assets: Auto and Plant Assets Automobiles Less: accumulated depreciation Office equipment Less: accumulated depreciation Store equipment Less: accumulated depreciation Total Auto and Plant Assets Total Assets $265,884 89,950 132,000 (42,050) 10,649 (658) 16,580 (2,268) 9,991 14,312 114,253 $380,137 Liabilities Current Liabilities: Accounts Payable $191,594 0 Office supplies Store supplies O O Owner, Capital 199,043 Total liabilities and owner's equity $390,637 ** Difference = -$ 10,500 $ Income Statement Fitchburg LLC Income Statement For Month Ended November 30, 20XX $292,617 Sales Revenue Less: Sales discounts rets & allow $663 663 291,954 $ 126, 120 304 125,816 166,138 Net Sales Cost of goods sold Less Purchase Discount Less: Total Cost of Goods Sold Gross Profit: Expenses: Selling Expenses Depreciation Expense -Automobiles Store supplies expense Salaries expense - Sales Total selling Expenses General and administrative Expenses Office supplies expense Insurance Expense Property Tax Expense Rent expense Utilities expense - Electricity Salaries expense - Office Total general and administrative expenses Total Expenses Net Income 16,800 3,105 16,165 36,070 $ 1,373 5,100 1,000 8,968 3,242 19,305 38,988 $ $ 75,058 91,080 Fitchburg, LLC Trial Balance For Month Ended November 30, 20XX Account Titles Cash Accounts receivable Merchandise inventory Office supplies Store supplies Prepaid insurance Automobiles Unadjusted Trial Balance Dr. Cr. 18,500 31,795 135,339 1,165 2,880 7,200 132,000 25,250 6,574 658 16,580 Accumulated depreciation-Automobiles Office equipment Accumulated depreciation Office Equipment Store Equipment Accumulated depreciation-Store Equipment Accounts payable Owner, Capital Owner, Withdrawal 2,268 118,548 113,883 132.100 273 19,210 Sales revenue Sales Discounts / Returns and Allowances Cost of Goods Sold Purchase Discount Depreciation expense - Automobiles Depreciation expense - Office Equipment Depreciation expense - Store Equipment Office supplies expense Store supplies expense Insurance expense Property Tax Expense Rent expense Salaries expense- Sales Salaries expense-Office Utilities expense - Electric 2.968 10,640 6,300 1,283 Totals 392,707 392,707 Credit Date Nov Account Titles and Explanation Sales Revenue Income Summary Close sales revenue to Income Sumaary 30 Debit 292,617 292,617 Nov 30 Income Summary Sales disc returns and allowances 133,119 Close contra accounts to Income Summary Nov 30 75,058 (3) Income Summary Purchase Discount Cost of Goods Sold Depreciation expense-Automobiles Store supplies expense Office supplies expense Insurance expense Property Tax Expense Rent expense Salaries expense- Sales Salaries expense-Office Utilities expense-Electricity Close COGS & expenses to Income Summary 16,800 3,105 1,373 5,100 1,000 8,968 16,165 19,305 3,242 Nov 30 84,440 Income Summary Owner, Capital Close Income / Summary to Capital 84,440 Nov 30 10,500 Owner, Capital Owner, Withdrawls Close owner withdrawals to Capital Account 10,500 462,615 462,615 Name Post Closing Trial Balance Fitchburg LLC Post-Closing Trial Balance November 30, 20XX Credit Debit $121,057 45,024 96,233 2,100 132,000 $ 42,050 Cash Accounts receivable Merchandise inventory Prepaid Insurance Automobiles accumulated depreciation Office equipment accumulated depreciation Store equipment accumulated depreciation Accounts Payable Owner, Capital 10,649 658 16,580 2,268 190,844 187,823 Totals $423,643 $423,643 $121,688 45, 104 96,992 2,100 Fitchburg LLC Balance Sheet November 30, 20XX Assets: Current assets: Cash Accounts receivable Merchandise inventory Prepaid Insurance Total current assets: Auto and Plant Assets Automobiles Less: accumulated depreciation Office equipment Less: accumulated depreciation Store equipment Less: accumulated depreciation Total Auto and Plant Assets Total Assets $265,884 89,950 132,000 (42,050) 10,649 (658) 16,580 (2,268) 9,991 14,312 114,253 $380,137 Liabilities Current Liabilities: Accounts Payable $191,594 0 Office supplies Store supplies O O Owner, Capital 199,043 Total liabilities and owner's equity $390,637 ** Difference = -$ 10,500 $ Income Statement Fitchburg LLC Income Statement For Month Ended November 30, 20XX $292,617 Sales Revenue Less: Sales discounts rets & allow $663 663 291,954 $ 126, 120 304 125,816 166,138 Net Sales Cost of goods sold Less Purchase Discount Less: Total Cost of Goods Sold Gross Profit: Expenses: Selling Expenses Depreciation Expense -Automobiles Store supplies expense Salaries expense - Sales Total selling Expenses General and administrative Expenses Office supplies expense Insurance Expense Property Tax Expense Rent expense Utilities expense - Electricity Salaries expense - Office Total general and administrative expenses Total Expenses Net Income 16,800 3,105 16,165 36,070 $ 1,373 5,100 1,000 8,968 3,242 19,305 38,988 $ $ 75,058 91,080 Fitchburg, LLC Trial Balance For Month Ended November 30, 20XX Account Titles Cash Accounts receivable Merchandise inventory Office supplies Store supplies Prepaid insurance Automobiles Unadjusted Trial Balance Dr. Cr. 18,500 31,795 135,339 1,165 2,880 7,200 132,000 25,250 6,574 658 16,580 Accumulated depreciation-Automobiles Office equipment Accumulated depreciation Office Equipment Store Equipment Accumulated depreciation-Store Equipment Accounts payable Owner, Capital Owner, Withdrawal 2,268 118,548 113,883 132.100 273 19,210 Sales revenue Sales Discounts / Returns and Allowances Cost of Goods Sold Purchase Discount Depreciation expense - Automobiles Depreciation expense - Office Equipment Depreciation expense - Store Equipment Office supplies expense Store supplies expense Insurance expense Property Tax Expense Rent expense Salaries expense- Sales Salaries expense-Office Utilities expense - Electric 2.968 10,640 6,300 1,283 Totals 392,707 392,707