Question

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

Adjustment data: 1. Supplies on hand totaled $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. $30,000 of notes payable 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

Answer 1

(a)	Nov.  30	Supplies Expense ($5,500 − $1,500).........................	4,000
		Supplies..................................................................		4,000
	30	Depreciation Expense..................................................	15,000
		Accumulated   Depreciation—               Equipment...........................................................		15,000
	30	Interest Expense...........................................................	11,000
		Interest   Payable.....................................................		11,000

(b)                                        BELLEMY   FASHION CENTER
	Adjusted Trial Balance
	November   30, 2017
		Dr.		Cr.
	Cash........................................................................	$       28,700
	Accounts Receivable..........................................	33,700
	Inventory................................................................	45,000
	Supplies.................................................................	1,500
	Equipment.............................................................	133,000
	Accumulated  Depr.— Equipment....................			$     39,000
	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
	Supplies Expense................................................	4,000
	Depreciation Expense.........................................	15,000
	Interest Expense..................................................	11,000
	Interest Payable....................................................			11,000
	Totals................................................................	$1,004,700		$1,004,700