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