The Trial Balance of Blakely Fashion Place contained the following accounts at December 31st, the end of the

companys fiscal year.

Blakely Fashion Place

Trial balance

December 31, 20XX

Debit Credit

Cash $26,700

Accounts receivable 33,700

Merchandise inventory 45,000

Store supplies 5,500

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

Common stock 90,000

Retained earnings 8,000

Sales revenue 757,200

Cost of goods sold 501,600

Salaries expense 140,000

Advertising expense 26,400

Utilities expense 14,000

Repair expense 12,100

Delivery expense 16,700

Rent expense 24,000

Totals $978,700 $978,700

Adjustment data:

Store supplies on hand total $3,500

Depreciation is $9,000 on the store equipment

Depreciation is $7,000 on the delivery equipment

Interest of $11,000 is accrued on notes payable at December 31st.

$30,000 of the notes payable is due for payment next year.

Required:

1. Prepare the journal entries for the necessary adjusting entries.

2. Prepare the Adjusted Trial Balance.

3. Prepare an income statement for the year ending December 31, 20XX. The format of the income

statement is at your discretion. What format did you use for the income statement?

4. Prepare a classified balance sheet as of December 31, 20XX.

5. Prepare the closing entries.

6. Prepare the post-closing trial balance.