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

BRENNAN FASHION CENTER

Trial Balance

30-Nov-02

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.
4. Merchandise inventory actually on hand is $44,400.

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.

Instructions
(a) Enter the trial balance on a work sheet, and complete the work sheet.
(b) Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of November 30, 2002.
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post-closing trial balance.

Transcribed Image Text:

Debit Credit S28,700 33,700 45.000 500 85,000 as Accounts Receivable Merchandise Inventory tore Supplies Store E Accumulated Depreciation-Store E Delivery E Accumulated Depreciation-Delivery E Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Sales Sales Returns and Allowances Cost of Goods Sold Salaries Expense Advertising Expense Utilities Expense nent nent S18,000 nent 48.000 6.000 1.000 48.500 80.000 30,000 12.000 759,200 4.200 497.400 140,000 26.400 14,000 12.100 16.700 24.000 ar se Delivery Expense Rent Expense Totals S992,700 S992,700