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The trial balance of Bellemy Fashion Center contained the following accounts at December 31, 2015, the end of the companys fiscal year. Bellemy Fashion Center
The trial balance of Bellemy Fashion Center contained the following accounts at December 31, 2015, the end of the companys fiscal year.
Bellemy Fashion Center Trial Balance December 31, 2015 | ||
Debit | Credit | |
Cash | $28,700 | |
Accounts Receivable | 21,200 | |
Allowance for doubtful Accounts | $ 1,700 | |
Notes Receivable | 12,500 | |
Merchandise Inventory | 45,000 | |
Store Supplies | 5,500 | |
Prepaid Insurance | 8,200 | |
Store Equipment | 85,000 | |
Accumulated Depreciation - Store Equipment | 18,000 | |
Delivery Equipment | 48,000 | |
Accumulated Depreciation - Delivery Equipment | 6,000 | |
Notes Payable | 51,000 | |
Accounts Payable | 48,500 | |
Share Capital - Ordinary | 90,000 | |
Retained Earnings | 40,500 | |
Dividends | 24,300 | |
Sales | 755,100 | |
Sales Returns and Allowances | 4,200 | |
Cost of Goods Sold | 495,000 | |
Salaries Expense | 140,000 | |
Utilities Expense | 14,000 | |
Repair Expense | 12,100 | |
Delivery Expense | 16,700 | |
Rent Expense | 24,000 | |
Advertising Expense | 26,400 | |
Directions
Prepare the adjusting entries for these accounts:
- Store supplies
- Depreciation
- Receivables
- Payables
- Salaries expense
- Insurance Expense
- COGS
ADJUSTING ENTRIES | |||
Date | Account | Debit | Credit |
Dec. 31 | Supplies expense | $3,700 | |
Store Supplies | $3,700 | ||
(Assume the store supplied $1,800 at the end) | |||
Dec. 31 | Depreciation Expense | $16,000 | |
Accumulated Depreciation - Store Equipment | $10,000 | ||
Accumulated Depreciation - Delivery Equipment | $6,000 | ||
(Assume that depreciation expense is $10,000 per year on Store equipment and $6,000 per year on Delivery equipment) | |||
Dec. 31 | Baddebt Debt expense | $420 | |
Allowance for doubtful Accounts | $420 | ||
(Assume the Allowance for doubtful accounts to be 10% of Accounts receivable) | |||
Dec. 31 | Interest Expense | $3,060 | |
Interest Payable | $3,060 | ||
(Assumed interest is due for current year @6% on notes payable) | |||
Dec. 31 | Salary expense | $10,000 | |
Salary payable | $10,000 | ||
(Assumed that Salary for last few days are payable) | |||
Dec. 31 | Insurance expense | $6,000 | |
Prepaid Insurance | $6,000 | ||
(Assumed insurance expired during the period) | |||
Dec. 31 | Cost of goods sold | $3,000 | |
Merchandise Inventory | $3,000 | ||
(Assumed the physical inventory counted on Dec. 31 is $42,000. Hence shortages adjusted)
4.Prepare financial statements 5.Journalize and post-the closing entries 6.Prepare a post-closing trial balance |
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