Question 1

Below is the trial balance of Bellemy Fashion Center as at year end, November 30, 2014:

BELLEMY FASHION CENTER - TRIAL BALANCE (30-Nov-14)
	Debit	Credit
Cash	$33,530
Accounts Receivable	37,400
Inventory	48,700
Supplies	9,200
Equipment	140,400
Accumulated Depreciation-Equipment		$26,260
Notes Payable		54,700
Accounts Payable		52,200
Common Stock		93,700
Retained Earnings		11,700
Sales Revenue		765,730
Sales Returns and Allowances	4,200
Cost of Goods Sold	495,400
Salaries and Wages Expense	138,960
Advertising Expense	27,530
Utilities Expenses	15,040
Maintenance and Repairs Expense	12,100
Delivery Expense	16,700
Rent Expense	25,130
Totals	$1,004,290	$1,004,290

Other information:

• Depreciation is $16,695 on the equipment.
• Supplies on hand totaled $5,200.
• Interest of $15,140 is accrued on notes payable at November 30.

Required:

1. Prepare the necessary adjusting journal entries as of November 30, 2014.
2. Prepare an adjusted trial balance as of November 30, 2014.

Question 2

Shown below is an income statement for 2010 that was prepared by a poorly trained bookkeeper of Howell Corporation.

Howell Corporation

INCOME STATEMENT

December 31, 2010

Sales revenue $945,000

Investment revenue 19,500

Cost of merchandise sold (408,500)

Selling expenses (145,000)

Administrative expense (215,000)

Interest expense (13,000)

Income before special items 183,000

Special items

Loss on disposal of a component of the business (30,000)

Major casualty loss (extraordinary item) (70,000)

Net federal income tax liability (24,900)

Net income $ 58,100

Required

Prepare a multiple-step income statement for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles (including format and terminology). Howell Corporation has 50,000 shares of common stock outstanding and has a 30% federal income tax rate on all tax related items.Round all earnings per share figures to the nearest cent.

Question 3

The following balance sheet was prepared by Kraus Company as of December 31, 2010.

Kraus Company

Balance Sheet

as of December 31, 2010

Cash $ 80,000 Accounts payable $ 75,000

Accounts receivable (net) 52,200 Long-term liabilities 100,000

Inventories 57,000 Stockholders' equity 218,500

Investments 76,300

Equipment (net) 96,000

Patents 32,000

$393,500 $393,500

The following additional information is provided:

1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.

2. The net accounts receivable balance includes:

(a) accounts receivabledebit balances $60,000;

(b) accounts receivablecredit balances $4,000;

(c) allowance for doubtful accounts $3,800.

3. Investments include investments in common stock, trading $19,000 and available-for-sale $48,300, and franchises $9,000.

4. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.

Required:

Prepare a balance sheet in good form (stockholders' equity details can be omitted.)

You should also attach the word or excel file so that we can see how you arrived at your numbers.