P5-6B, Journalize, post, and prepare adjusted trial balance and financial statements.

The trial balance of Buse's Fashion Center contained this accounts at November 30, the end of the companys 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

Accum DeprecEquipment

$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 the notes payable are payable next year.

Instructions:

(a) Journalize the adjusting entries.

11/30

Account Title

Amount

Account Title

Amount

11/30

Account Title

Amount

Account Title

Amount

11/30

Account Title

Amount

Account Title

Amount

11/30

Account Title

Amount

Account Title

Amount

(b) Using the T accounts below, enter the trial balance amounts into the T accounts and post the adjusting entries from part (a).

Supplies

Account Title

Supplies Expense

Account Title

Accum DeprecEquipment

Account Title

Account Title

Account Title

(c) Prepare an adjusted trial balance.

BUSE'S FASHION CENTER

Adjusted Trial Balance

November 30, 2014

Debit

Credit

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Account Title

Totals

Formula

Formula

(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at November 30, 2014.

BUSE'S FASHION CENTER

Income Statement

For the Year Ended November 30, 2014

Title

Account Title

Amount

Less: Account Title

Amount

Title

Formula

Account Title

Amount

Title

Formula

Title

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Title

Formula

Title

Formula

Title

Account Title

Amount

Title

Formula

Account Title

Amount

Title

Formula

BUSE'S FASHION CENTER

Retained Earnings Statement

For the Year Ended November 30, 2014

Title

Amount

Add: Account Title

Amount

Formula

Less: Account Title

Amount

Title

Formula

BUSE'S FASHION CENTER

Balance Sheet

November 30, 2014

Assets

Title

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Title

Formula

Title

Account Title

Amount

Less: Account Title

Amount

Formula

Title

Formula

Liabilities and Stockholders Equity

Title

Account Title

Amount

Account Title

Amount

Account Title

Amount

Account Title

Amount

Title

Formula

Title

Account Title

Amount

Title

Formula

Title

Account Title

Amount

Account Title

Amount

Title

Formula

Title

Formula