Question
Problem 5-5A The trial balance of Valdez Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. VALDEZ FASHION
Problem 5-5A
The trial balance of Valdez Fashion Center contained the following accounts at November 30, the end of the company's fiscal year.
VALDEZ FASHION CENTER
Trial Balance
November 30, 2015
Debit
Credit
Cash$8,030
Accounts Receivable28,930
Inventory42,450
Supplies6,040
Equipment131,500
Accumulated DepreciationEquipment$26,030
Notes Payable51,000
Accounts Payable37,160
Common Stock51,440
Retained Earnings44,970
Dividends12,330
Sales Revenue755,300
Sales Returns and Allowances8,660
Cost of Goods Sold497,300
Salaries and Wages Expense139,900
Advertising Expense24,210
Utilities Expense13,910
Maintenance and Repairs Expense12,160
Freight-Out16,570
Rent Expense23,910
Totals$965,900
$965,900
Adjustment data:
1.Supplies on hand totaled $2,190.2.Depreciation is $11,400on the equipment.3.Interest of $4,530is accrued on notes payable at November 30.4.Inventory actually on hand is $42,050.
Enter the trial balance on a worksheet, and complete the worksheet.
VALDEZ FASHION CENTER
Worksheet
For the Year Ended November 30, 2015
Account Titles
Trial Balance
Adjustments
Adj. Trial Balance
Income Statement
Balance Sheet
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash8,030
Accounts Receivable28,930
Inventory42,450
Supplies6,040
Equipment131,500
Accum. DepreciationEquipment26,030
Notes Payable51,000
Accounts Payable37,160
Common Stock51,440
Retained Earnings44,970
Dividends12,330
Sales Revenue755,300
Sales Returns and Allowances8,660
Cost of Goods Sold497,300
Salaries and Wages Expense139,900
Advertising Expense24,210
Utilities Expense13,910
Maintenance and Repairs Expense12,160
Freight-Out16,570
Rent Expense23,910
Totals965,900
965,900
Supplies Expense
Depreciation Expense
Interest Expense
Interest Payable
Totals
Net Loss
Totals
SHOW LIST OF ACCOUNTS
Prepare a multiple-step income statement for the year.
VALDEZ FASHION CENTER
Income Statement
For the Year Ended November 30, 2015
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
$
Less
Add
:
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
$
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
Dividends
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Sales
Total Revenues
Net Sales
Gross Profit
Operating Expenses
Total Operating Expenses
Income from Operations
Other Expenses and Losses
$
SHOW LIST OF ACCOUNTS
Prepare an retained earnings statement for the year.(List items that increase retained earnings first.)
VALDEZ FASHION CENTER
Retained Earnings Statement
For the Year Ended November 30, 2015
Dividends
Expenses
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Revenue
Total Expenses
Total Revenues
$
Add
Less
:
Dividends
Expenses
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Revenue
Total Expenses
Total Revenues
$
Dividends
Expenses
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Revenue
Total Expenses
Total Revenues
Dividends
Expenses
Net Income / (Loss)
Retained Earnings, December 1, 2014
Retained Earnings, November 30, 2015
Revenue
Total Expenses
Total Revenues
$
SHOW LIST OF ACCOUNTS
Prepare a classified balance sheet as of November 30, 2015. Notes payable of $19,050are due in January 2016.(List current assets in order of liquidity.)
VALDEZ FASHION CENTER
Balance Sheet
November 30, 2015
Assets
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Revenues
Total Stockholders' Equity
$
Add
Less
:
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
Liabilities and Stockholders' Equity
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
Current Assets
Current Liabilities
Intangible Assets
Long-term Investments
Long-term Liabilities
Property, Plant and Equipment
Stockholders' Equity
Total Assets
Total Current Assets
Total Current Liabilities
Total Intangible Assets
Total Liabilities
Total Liabilities and Stockholders' Equity
Total Long-term Investments
Total Long-term Liabilities
Total Property, Plant and Equipment
Total Stockholders' Equity
$
SHOW LIST OF ACCOUNTS
Journalize the adjusting entries.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
1.
Nov. 30
(To adjust supplies expense)
2.
Nov. 30
(To adjust depreciation on equipment)
3.
Nov. 30
(To adjust interest expense)
4.
Nov. 30
(To adjust merchandise inventory)
SHOW LIST OF ACCOUNTS
Journalize the closing entries.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Nov. 30
(To close accounts with credit balances)
Nov. 30
(To close accounts with debit balances)
Nov. 30
(To close net income / (loss))
Nov. 30
(To close dividends)
SHOW LIST OF ACCOUNTS
Prepare a post-closing trial balance.
VALDEZ FASHION CENTER
Post-Closing Trial Balance
November 30, 2015
Debit
Credit
$
$
$
$
List Of Accounts:
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Advertising Expense
Buildings
Cash
Common Stock
Cost of Goods Sold
Depreciation Expense
Dividends
Equipment
Freight-in
Freight-out
Gain on Disposal of Plant Assets
Income Summary
Insurance Expense
Interest Expense
Interest Payable
Interest Revenue
Inventory
Land
Loss on Disposal of Plant Assets
Maintenance and Repairs Expense
Mortgage Payable
Notes Payable
Operating Expenses
Prepaid Insurance
Property Tax Expense
Property Taxes Payable
Purchase Discounts
Purchase Returns and Allowances
Purchases
Rent Expense
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Sales Commissions Expense
Sales Commissions Payable
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Supplies
Supplies Expense
Utilities Expense
Utilities Payable
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
129208829X, 1292088297, 978-1292088297
