Question

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

BRAMBLE FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2020
		Debit			Credit
Cash		$33,320
Accounts Receivable		37,090
Inventory		48,390
Supplies		8,890
Equipment		139,780
Accumulated Depreciation-Equipment					$26,460
Notes Payable					54,390
Accounts Payable					51,890
Common Stock					93,390
Retained Earnings					11,390
Sales Revenue					765,210
Sales Returns and Allowances		4,200
Cost of Goods Sold		495,400
Salaries and Wages Expense		138,480
Advertising Expense		27,630
Utilities Expenses		15,520
Maintenance and Repairs Expense		12,100
Delivery Expense		16,700
Rent Expense		25,230
Totals		$1,002,730			$1,002,730

Adjustment data:

1.		Supplies on hand totaled $4,890.
2.		Depreciation is $16,845 on the equipment.
3.		Interest of $10,310 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.		$30,000 of notes payable are due for payment next year.
4.		Maintenance and repairs expense is 100% administrative.

Prepare a post-closing trial balance.

Answer 1

BRAMBLE FASHION CENTER
Post-Closing Trial Balance
November 30
Account title	Debit	Credit
Cash	$33,320
Accounts Receivable	37,090
Inventory	48,390
Supplies	4,890
Equipment	139,780
Accumulated Depreciation-Equipment		$43,305
Notes Payable		54,390
Accounts Payable		51,890
Interest payable		10,310
Common Stock		93,390
Retained Earnings		10,185
Total	$263,470	263,470

Calculations:

Income Statement
Sales Revenue		765,210
Less: Expenses
Sales Returns and Allowances	4,200
Cost of Goods Sold	495,400
Salaries and Wages Expense	138,480
Advertising Expense	27,630
Utilities Expenses	15,520
Maintenance and Repairs Expense	12,100
Delivery Expense	16,700
Rent Expense	25,230
Supplies expense [8,890-4,890]	4,000
Depreciation Expense	16,845
Interest expense	10,310
Total Expenses		766,415
Net loss		-1,205

Retained earnings, Ending balance = Beginning balance - Net loss = 11,390-1,205 = 10,185