Question

The trial balance of Crane Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. Credit CRANE FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2020 Debit Cash $32,700 Accounts Receivable 36,700 Inventory 48,000 Supplies 8,500 Equipment 139,000 Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Sales Revenue Sales Returns and Allowances 4,200 Cost of Goods Sold 495,400 Salaries and Wages Expense 139,000 Advertising Expense 27,400 Utilities Expenses 15,000 Maintenance and Repairs Expense 12,100 Delivery Expense 16,700 Rent Expense 25,000 Totals $999,700 $26,000 54,000 51,500 93,000 11,000 764,200 $999,700

Answer 1

Crane Fashion Center Journal entries Date Account 30-Nov Supplies expense Supplies Credit Debit $ 4,000 Calculation =8,500-4,500 $ 4,000 $ 16,500 30-Nov Depreciation expense Accumulated Depreciation- Equipment $ 16,500 $ 10,100 30-Nov Interest expense Interest Payable $ 10,100

Crane Fashion Center Account Names Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation - Equipment Notes Payable Accounts Payable Interest Payable Common Stock Retained Earnings Sales Revenue Sales Returns and Allowances Cost of goods sold Salaries and wages expense Advertising expense Utilities expense Maintenance and repairs expense Delivery expense Rent expense Supplies expense Depreciation expense Interest expense Totals Adjusted TB Debit Credit 32,700 36,700 48,000 4,500 139,000 42,500 54,000 51,500 10,100 93,000 11,000 764,200 4,200 495,400 139,000 27,400 15,000 12,100 16,700 25,000 4,000 16,500 10,100 1,026,300 1,026,300

Calculation 764,200 4,200 760,000 495,400 264,600 139,000*70% 15,000*80% Crane Fashion Center Multi-Step Income Statement For the Year Ended November 30, 2020 Sales Revenue Less Sales Returns and Allowances Sales Revenue, Net Less Cost of goods sold Gross Profit Operating expenses Selling expenses Salaries and wages expense Advertising expense Utilities expense Delivery expense Rent expense Supplies expense Depreciation expense Total Selling expenses Administrative expenses Salaries and wages expense Utilities expense Maintenance and repairs expense Rent expense Total Administrative expenses Total Operating expenses Operating Income Non-operating items Interest expense Net Loss 97,300 27,400 12,000 16,700 20,000 4,000 16,500 25,000*80% 193,900 139,000*30% 15,000*20% 41,700 3,000 12,100 5,000 25,000*20% 61,800 255,700 8,900 10,100 (1,200) Crane Fashion Center Statement of Retained Earnings For the Year Ended November 30, 2020 Retained Earnings, Dec 1, 2019 Less Net Loss Retained Earnings, Nov 30, 2020 11,000 (1,200) 9,800

Crane Fashion Center Balance Sheet As of November 30, 2020 Assets Current Assets Cash Accounts Receivable Inventory Supplies Total Current Assets 32,700 36,700 48,000 4,500 121,900 Property, Plant & Equipment Equipment Accumulated Depreciation-Equipment Total Property, Plant & Equipment Total Assets 139,000 (42,500) 96,500 218,400 Liabilities & Stockholders Equity Current Liabilities Notes Payable - current portion Accounts Payable Interest Payable Total Current Liabilities 30,000 51,500 10,100 91,600 Non-Current Liabilties Notes Payable Total Liabilties 24,000 =54,000-30,000 115,600 Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Stockholders Equity 93,000 9,800 102,800 218,400

Closing entries 30-Nov Sales Revenue Income Summary $ 764,200 $ 764,200 $ 765,400 30-Nov Income Summary Sales Returns and Allowances Cost of goods sold Salaries and wages expense Advertising expense Utilities expense Maintenance and repairs expense Delivery expense Rent expense Supplies expense Depreciation expense Interest expense $ 4,200 $ 495,400 $ 139,000 $ 27,400 $ 15,000 $ 12,100 $ 16,700 $ 25,000 $ 4,000 $ 16,500 $ 10,100 $ 1,200 30-Nov Retained Earnings Income Summary $ 1,200

Crane Fashion Center Account Names Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Interest Payable Common Stock Retained Earnings Totals Post Closing TB Debit Credit 32,700 36,700 48,000 4,500 139,000 42,500 54,000 51,500 10,100 93,000 9,800 260,900 260,900