Instructions:

a) Prepare an adjusted trial balance. You do not have to prepare a worksheet. (For adjustment 4, the company will debit COGS for the write-down.)

b) Prepare a SOCI and Balance Sheet in the form and format prescribed in this course.

c) Journalise the required adjusting and closing entries. You do not have to prepare and submit a general ledger.

d) What is the best justification for debiting COGS instead of Inventory Write-down Expense for adjustment 4?

P5-5A The trial balance of Mr. Rosiak Fashion Center, Ltd. contained the following accounts at November 30, the end of the company's fiscal y car. MR. ROSIAK FASHION CENTER, LTD Trial Balance November 30, 2017 Debit Credit Cash Accounts Reccivablc Inventory Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Share Capital-Ordinary Retained Earnings Dividends Salcs Rcvenuc Sales Returns and Allowances Cost of Goods Sold Salaries and Wages Expense 8,700 27,700 44,700 6,200 133,000 23,000 51,000 48,500 50,000 38,000 8,000 755,200 dvertising Expense Utilitics Expensc Maintenance and Repairs Expense Freight-Out Rent Expense 12,800 497,400 136,000 24,400 14,000 12,100 16,700 24,000 965,700 Totals 965,700 Adjustment data: 1. Supplies on hand totaled 2,100 2. Depreciation is 11,500 on the cquipment. 3. Interest of 4,000 is accrued on notes payable at November 30. 4. Inventory actually on hand is 44,520