The trial balance of Ivanna Fashion Center contained the following accounts at November 30 , the end of the company's fiscal year.

Adjustment data:
1. Store supplies on hand totaled \(\$ 3,500\).
2. Depreciation is \(\$ 9,000\) on the store equipment and \(\$ 7,000\) on the delivery equipment.
3. Interest of \(\$ 11,000\) is accrued on notes payable at November 30 .
Other data:
1. Salaries expense is \(70 \%\) selling and \(30 \%\) administrative.
2. Rent expense and utilities expense are \(80 \%\) selling and \(20 \%\) administrative.
3. \(\$ 30,000\) of notes payable are due for payment next year.
4. Repair expense is \(100 \%\) administrative.
\section*{Instructions}

(a) Enter the trial balance on a work sheet and complete the work sheet.

(b) Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 1998.

(c) Journalize the adjusting entries.

(d) Journalize the closing entries.

(e) Prepare a post-closing trial balance.

Transcribed Image Text:

IVANNA FASHION CENTER Trial Balance November 30, 1998 Debit Credit Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment $ 16,700 33,700 45,000 5,500 85,000 Accumulated Depreciation-Store Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment $ 18,000 48,000 6,000 Notes Payable 51,000 Accounts Payable 48,500 Common Stock 80,000 Retained Earnings 30,000 Dividends 12,000 Sales 757,200 Sales Returns and Allowances 4,200 Cost of Goods Sold 507,400 Salaries Expense Advertising Expense Utilities Expense Repair Expense Delivery Expense Rent Expense 140,000 26,400 14,000 12,100 16,700 24,000 $990,700 $990,700