The trial balance of Bellemy Fashion Center contained the following accounts at December 31, 2015, the end of the companys fiscal year.

4.Prepare financial statements

5.Journalize and post-the closing entries

6.Prepare a post-closing trial balance

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) Bellemy Fashion Center Trial Balance December 31, 2015 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Cash $28,700 $28,700 Accounts Receivable $21,200 $21,200 Allowance for doubtful Accounts $1,700 $420 $2,120 Notes Receivable $12,500 $12,500 Merchandise Inventory $45,000 $3,000 $42,000 Store Supplies $5,500 $3,700 $1,800 Prepaid Insurance $8,200 $6,000 $2,200 Store Equipment $85,000 $85,000 Accumulated Depreciation - Store Equipment $18,000 $10,000 $28,000 Delivery Equipment $48,000 $48,000 Accumulated Depreciation - Delivery Equipment $6,000 $6,000 $12,000 Notes Payable $51,000 $51,000 Accounts Payable $48,500 $48,500 Interest Payable $3,060 $3,060 Salary payable $10,000 $10,000 Share Capital - Ordinary $90,000 $90,000 Retained Earnings $40,500 $40,500 Dividends $24,300 $24,300 Sales $7,55,100 $7,55,100 Sales Returns and Allowances $4,200 $4,200 Cost of Goods Sold $4,95,000 $3,000 $4,98,000 Salaries Expense $1,40,000 $1,40,000 Utilities Expense $14,000 $14,000 Repair Expense $12,100 $12,100 Delivery Expense $16,700 $16,700 Rent Expense $24,000 $24,000 Advertising Expense $26,400 $26,400 Supplies expense $3,700 $3,700 Depreciation Expense $16,000 $16,000 Baddebt Debt expense $420 $420 Interest Expense $3,060 $3,060 Salary expense $10,000 $10,000 Insurance expense $6,000 $6,000 Totals $10,10,800 $10,10,800 $42,180 $42,180 $10,40,280 $10,40,280