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

BELLEMY FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2017
	Debit	Credit
Cash	\( 28,700
Accounts Receivable	33,700
Inventory	45,000
Supplies	5,500
Equipment	133,000
Accumulated Depreciation—Equipment		\) 24,000
Notes Payable		51,000
Accounts Payable		48,500
Common Stock		90,000
Retained Earnings		8,000
Sales Revenue		757,200
Sales Returns and Allowances	4,200
Cost of Goods Sold	495,400
Salaries and Wages Expense	140,000
Advertising Expense	26,400
Utilities Expenses	14,000
Maintenance and Repairs Expense	12,100
Delivery Expense	16,700
Rent Expense	24,000
	\(978,700	\)978,700

Adjustment data:

1. Supplies on hand total \(1,500.

2. Depreciation is \)15,000 on the 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 expenses are 80% selling and 20% administrative.

3. Notes payable worth \)30,000 are due for payment next year.

4. Maintenance and repairs expense is 100% administrative.

Instructions

(a) Journalize the adjusting entries.

(b) Prepare an adjusted trial balance.

(c) Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2017.

(d) Journalize the closing entries.

(e) Prepare a post-closing trial balance.

Date

Particulars

Debit ($)

Credit ($)

Nov. 30

Supplies expense

4,000

Supplies

4,000

($5,500 - $1,500)

30

Depreciation expense

15,000

Accumulated depreciation-

equipment

15,000

30

Interest expense

11,000

Interest payable

11,000

BELLEMY FASHION CENTER

TRIAL BALANCE

NOVEMBER 30, 2017

Debit

Credit

Cash

$ 28,700

Accounts Receivable

33,700

Inventory

45,000

Supplies ($5,500-$4,000)

1,500

Equipment

133,000

Accumulated Depreciation—Equipment($24,000+$15,000)

$ 39,000

Notes Payable

51,000

Accounts Payable

48,500

Common Stock

90,000

Retained Earnings

8,000

Interest payable

11,000

Sales Revenue

757,200

Sales Returns and Allowances

4,200

Cost of Goods Sold

495,400

Salaries and Wages Expense

140,000

Advertising Expense

26,400

Utilities Expenses

14,000

Maintenance and Repairs Expense

12,100

Delivery Expense

16,700

Rent Expense

24,000

Supplies expense

4,000

Depreciation expense

$15,000

Interest expense

$11,000

Total

$1,004,700

$1,004,700

BELLEMY FASHION CENTERE

Income Statement

NOVEMBER 30, 2017

Sales revenue

Sales

$757,200

Less: Sales return and allowances

4,200

Net sales

753,000

Cost of goods sold

495,400

Gross profit

257,600

Operating expense

Selling expenses

Salaries and wages expense

($140,000 x 70%) $98,000

Advertising expense 26,400

Rent expense ($24,000 x 80%)19,200

Delivery expense 16,700

Utilities expense ($14,000 x 80%)11,200

Depreciation expense 15,000

Supplies expense 4,000

$190,500

Administrative expenses

Salaries and wages expense

($140,000 x30%) $42,000

Maintenance and repairs expense 12,100

Rent expense ($24,000 x 80%)4,800

Utilities expenses ($14,000 x 80 2,800

Total administrative expenses 61,700

Total operating expense

252,200

Income from operations

$5,400

Other expenses and losses:

Interest expense

11,000

Net loss

($5,600)

BELLEMY FASHION CENTERE

Retained Earnings

NOVEMBER 30, 2017

Retained earnings, December 1, 2016

$8,000

Less: Net loss

5,600

Retained earnings, November 30, 2017

$2,400

BELLEMY FASHION CENTERE

Balance sheet

NOVEMBER 30, 2017

Assets

Current asset

Cash $28,700

Account receivable 33,700

Inventory 45,000

Supplies 1,500

Total current assets

$108,900

Property, plant, and equipment

Equipment 133,000

Accumulated depreciation-equipment 39,000

94,000

Total assets

$202,900

Liabilities and Stockholder’s equity

Current liabilities

Notes payable due next year $30,000

Accounts payable 48,500

Interest payable 11,000

Total current liabilities

$89,500

Long-term liabilities

Notes payable ($51,000 - $30,000)

21,000

Toral liabilities

110,500

Stockholder’s equity

Common stock 90,000

Retained earnings2,400

92,400

Total liabilities and stockholders’ equity

$202,900

Date

Particulars

Debit ($)

Credit ($)

Nov. 30

Sales revenue

757,200

Income Summary

757,200

30

Income Summary

762,800

Sales returns and allowance

4,200

Cost of goods sold

495,400

Salaries and wages expense

140,000

Advertising expense

26,400

Utility expense

14,000

Maintenance and repair expense

12,100

Delivery expense

16,700

Rent expense

24,000

Supplies expense

4,000

Depreciation expense

15,000

Interest expense

11,000

30

Retained earnings

5,600

Income Summary

($757,200-$762,800)

5,600

BELLEMY FASHION CENTER

Post-Closing TRIAL BALANCE

NOVEMBER 30, 2017

Debit

Credit

Cash

$ 28,700

Accounts Receivable

33,700

Inventory

45,000

Supplies ($5,500-$4,000)

1,500

Equipment

133,000

Accumulated Depreciation—Equipment

$ 39,000

Notes Payable

51,000

Accounts Payable

48,500

Interest payable

11,000

Common Stock

90,000

Retained Earnings

2,400

$241,900

$241,900