Question

Problem 3-04 The trial balance of Sheridan Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. Credit SHERIDAN FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2020 Debit Cash $32,970 Accounts Receivable 36,880 Inventory 48,180 Supplies 8,680 Equipment 139,360 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 138,760 Advertising Expense 27,490 Utilities Expenses 15,240 Maintenance and Repairs Expense 12,100 Delivery Expense 16,700 Rent Expense 25,090 Totals $1,001,050 $26,180 54,180 51,680 93,180 11,180 764,650 $1,001,050

Answer 1

Credit Adjusting Journal Entries Date Accounts Debit Nov.30 Supplies Expense $ 4,000 Supplies (To record supplies expense)[$8680-4680] $ 4,000 $ 16,635 Nov.30 Depreciation Expense Accumulated depreciation (To record annual depreciation) $ 16,635 $ 10,720 Nov.30 Interest Expense Interest Payable (To record accrued interest) $ 10,720

A SHERIDAN FASHION CENTER Adjusting Trail Balance As on November 30, Account Info Debit Credit Cash $ 32,970 Accounts Receivable $ 36,880 Inventory 48,180 Supplies $ 4,680 Equipment S 139,360 Accumulated Depreciation-Equipment $ 42,815 Notes payable $ 54,180 Accounts Payable $ 51,680 Interest Payable $ 10,720 Common stock $ 93,180 Retained Earnings $ 11,180 Sales Revenue S 764,650 Sales Return and Allowances $ 4,200 Cost of goods sold $ 495,400 Salaries and wages Expense S 138,760 Advertising Expense $ 27,490 Utilities Expense S 15,240 Maintenance and Repairs Expense S 12,100 Delivery Expense S 16,700 Rent Expense $ 25,090 Depreciation Expense $ 16,635 Supplies Expense $ 4,000 Interest Expense $ 10,720 Total $ 1,028,405 $ 1,028,405

SHERIDAN FASHION CENTER Retained Earnings Statement For the Months Ending November 30 Beginning Retained Earnings $ 11,180 Add: Net Income -$ 1,685 Ending Retained Earnings, $ 9,495 Supplies SHERIDAN FASHION CENTER Income Statement For the Months Ending November 30 Revenues: Sales Revenue $ 764,650 Less: Sales Returns and Allowances $ 4,200 Net Sales $760,450 Cost of Goods sold $ 495,400 Gross Profit $ 265,050 Operating Expenses: Selling Expenses: Salaries and Wages Expenses $ 97,132 Advertising Expenses $ 27,490 Utilities Expenses $ 12,192 Delivery Expenses Delivery Expenced $ 16,700 Finance $ 20,072 Supplies Expenses $ 4,000 Depreciation Expenses $ 16,635 Total Selling Expenses $ 194,221 Administrative Expenses: Salaries and Wages Expenses $ 41,628 Thilities Utilities Expenses $ 3,048 Maintenance and Repairs Expenses $ 12,100 Rent Expenses $ 5,018 Total Administrative Expenses $ 61,794 Total Operating Expenses $ 256,015 Operating Income $ 9,035 Non-Operating Income and Expenses: Interest Expenses $ 10,720 Net Loss - $ 1,685 Rent Expenses SHERIDAN FASHION CENTER Balance sheet At November 30 Assets: Current Assets Cash $ 32,970 Accounts Receivable $ 36,880 Inventory $ 48,180 $ 4,680 Total Current Assets $ 122,710 Property,plant and Equipment Equipment $ 139,360 Less:Accumulated Depreciation-Equipment $ 42,815$ 96,545 Total Assets $ 219,255 Liabilities and Stockholders Equity Liabilities Accounts Payable $ 51,680 Notes Payable-Currnet $ 24,180 Interest Payable $ 10,720 Total Current Liabilities $ 86,580 Long-term Liabilities Notes payable $ 30,000 Total Liabilities $ 116,580 Stockholders' Equity: Common stock $ 93,180 Retained Earnings $ 9,495 Total Stockholders' equity $ 102,675 Total Liabilities and Stockholders' Equity $ 219,255 $ $

Si. Credit Debit $ 764,650 1 Date Particulars Nov.30 Sales Revenue Income Summary (To close the revenue account to income summary) $ 764,650 2 $ 766,335 Nov.30 Income Summary Sales Return and Allowances Cost of goods sold Salaries and wages Expense Advertising Expense Utilities Expense Maintenance and Repairs Expense Delivery Expense Rent Expense Depreciation Expense Supplies Expense Interest Expense (To close the expense account to income summary) $ 4,200 $ 495,400 $ 138,760 $ 27,490 $ 15,240 $ 12,100 $ 16,700 $ 25,090 $ 16,635 $ 4,000 $ 10,720 3 $ 1,685 Nov.30 Retained Earnings Income Summary (To close Income statement to retained earnings) $ 1,685

SHERIDAN FASHION CENTER Closing Trail Balance As on November 30, Account Info Debit Credit Cash $ 32,970 Accounts Receivable S 36,880 Inventory $ 48,180 Supplies S 4,680 Equipment $ 139,360 Accumulated Depreciation Equipment $ 42,815 Notes payable 54,180 Accounts Payable $ 51,680 Interest Payable $ 10,720 Common stock $ 93,180 Retained Earnings S 9,495 Total $ 262,070 $ 262,070

*Salaries Expense,[$138,760] =Selling 70%=$97,132 and Admin 30%=$41,628;

*Rent Expense,[$25,090] =Selling 80%=$20,072 and Admin 20%=$5,018;

*Utilities Expense,[$15,240] =Selling 80%=$12,192 and Admin 20%=$3,048;

*Maintenance Expense,[$12,100] =Admin 100%=$12,100.

*Notes payable[$54,180]; Long term=$30,000. Current=$24,180.

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