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