Question

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, 2010

Debit Credit
Cash $28,700
Accounts Receivable 33,700
Merchandise Inventory 45,000
Store Supplies 5,500
Store Equipment 85,000
Acc. Depreciation - Store Equipment $18,000
Delivery Equipment 48,000
Acc. Depreciation - Delivery Equipment 6,000
Notes Payable 51,000
Accounts Payable 48,500
Common Stock 90,000
Retained Earnings 8,000
Sales 757,200
Sales Returns and Allowances 4,200
Cost of Goods Sold 495,400
Salaries Expense 140,000
Advertising Expense 26,400
Utilities Expense 14,000
Repair Expense 12,100
Delivery Expense 16,700
Rent Expense 24,000


$978,700
$978,700



Adjustment data:

Store supplies on hand totaled $1,500.
Depreciation is $9,000 on the store equipment and $6,000 on the delivery equipment.
Interest of $11,000 is accrued on notes payable at November 30.
Other data:
Salaries expense is 70% selling and 30% administrative.
Rent expense and utilities expense are 80% selling and 20% administrative.
$30,000 of notes payable are due for payment next year.
Repair expense is 100% administrative.





Journalize the adjusting entries.


Prepare an adjusted trial balance

Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2010.
Journalize the closing entries
Prepare a post-closing trial balance

Answer 1

(a) Nov. 30 Store Supplies Expense 4,000 Store Supplies.... 4,000 30 Depr. Expense -Store Equipment.. Accumulated Depreciation- 9,000 Store Equipment. 9,000 30 Depr. Expense-Delivery Equipment. Accumulated Depreciation- 6,000 Delivery Equipment 6,000 30 Interest Expens.» 11,000 Interest Payable 11,000

BELLEMY FASHION CENTER Adjusted Trial Balance November 30, 2010 Dr Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment Accumulated Depr_ 28,700 33,700 45,000 1,500 85,000 Store Equipment Delivery Equipment Accumulated Depr- 27,000 48,000 Delivery Equipment Notes Payable Accounts Payable Share Capital-Ordinary Retained Earnin Sales Sales Returns and 12,000 51,000 48,500 90,000 8,000 757,200 Allowances Cost of Goods Sold Salaries Expense Advertising Expense Utilities Expense Repair Expense Delivery Expense Rent Expense Store Supplies Expense Depreciation Expense- 4,200 495,400 140,000 26,400 14,000 12,100 16,700 24,000 4,000 Store Equipment Depreciation Expense 9,000 Delivery Equipment Interest Expense Interest Payable 6,000 11,000 11,000 Totals

BELLEMY FASHION CENTER Income Statement For the Year Ended November 30, 2010 Sales revenue Sale Less: Sales returns and 757,200 allowances 4,200 753,000 495,400 257,600 Net sales Cost of goods sold Gross profit Operating expenses Selling expenses Salaries expense (€140,000 X 70%) Advertising expense Rent expense 98,000 26,400 (€24,000 x 80%) Delivery expense Utilities expense 19,200 16,700 (14,000 X 80%) Depr. exp-ste equipment Depr. exp.-deliv. equipment Store supplies expens... 11,200 9,000 6,000 ..4,000 190,500 Administrative expenses Salaries expense (€140,000 x 30%) Repair expense Rent expense 42,000 12,100 (24,000 X 20%) 4,800 Utilities expense 14,000 X 20%) ー2,800 61,700 Other income and expense Interest expense 一11.000 Net loss Totals

BELLEMY FASHION CENTER Retained Earnings Statement For the Year Ended November 30, 2010 Retained earnings, December 1, 2009 Less: Net lo Retained earnings, November 30, 2010 8,000 5,600 2.400 BELLEMY FASHION CENTER Statement of Financial Position November 30, 2010 Assets Noncurrent assets Property, plant, and equipment Store equipment Accum. depr.-store equipment Delivery equipment Accum. depr.-delivery equipment. 12,000 36,000 $85,000 27.000 58,000 48,000 94,000 Current assets Store supplies Merchandise inventory Accounts receivable Cash 1,500 45,000 33,700 Total current assets 108,900 202.900 Total assets Equity and Liabilities Equity Share capital-ordinary Retained earnings 90,000 2.400 92,400 Noncurrent Liabilities Notes payable 21,000 Current Liabilities Notes payable due next year..30,000 Accounts payable Interest payable 48,500 Total current liabilitie Total liabilities 89,500 110,500 202,900 Total equity and liabilities.

BELLEMY FASHION CENTER Retained Earnings Statement For the Year Ended November 30, 2010 Retained earnings, December 1, 2009 Less: Net lo Retained earnings, November 30, 2010 8,000 5,600 2.400 BELLEMY FASHION CENTER Statement of Financial Position November 30, 2010 Assets Noncurrent assets Property, plant, and equipment Store equipment Accum. depr.-store equipment Delivery equipment Accum. depr.-delivery equipment. 12,000 36,000 $85,000 27.000 58,000 48,000 94,000 Current assets Store supplies Merchandise inventory Accounts receivable Cash 1,500 45,000 33,700 Total current assets 108,900 202.900 Total assets Equity and Liabilities Equity Share capital-ordinary Retained earnings 90,000 2.400 92,400 Noncurrent Liabilities Notes payable 21,000 Current Liabilities Notes payable due next year..30,000 Accounts payable Interest payable 48,500 Total current liabilitie Total liabilities 89,500 110,500 202,900 Total equity and liabilities.

Answer 2

(a) Nov. 30 Store Supplies Expense 4,000 Store Supplies.... 4,000 30 Depr. Expense -Store Equipment.. Accumulated Depreciation- 9,000 Store Equipment. 9,000 30 Depr. Expense-Delivery Equipment. Accumulated Depreciation- 6,000 Delivery Equipment 6,000 30 Interest Expens.» 11,000 Interest Payable 11,000

BELLEMY FASHION CENTER Adjusted Trial Balance November 30, 2010 Dr Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment Accumulated Depr_ 28,700 33,700 45,000 1,500 85,000 Store Equipment Delivery Equipment Accumulated Depr- 27,000 48,000 Delivery Equipment Notes Payable Accounts Payable Share Capital-Ordinary Retained Earnin Sales Sales Returns and 12,000 51,000 48,500 90,000 8,000 757,200 Allowances Cost of Goods Sold Salaries Expense Advertising Expense Utilities Expense Repair Expense Delivery Expense Rent Expense Store Supplies Expense Depreciation Expense- 4,200 495,400 140,000 26,400 14,000 12,100 16,700 24,000 4,000 Store Equipment Depreciation Expense 9,000 Delivery Equipment Interest Expense Interest Payable 6,000 11,000 11,000 Totals

BELLEMY FASHION CENTER Income Statement For the Year Ended November 30, 2010 Sales revenue Sale Less: Sales returns and 757,200 allowances 4,200 753,000 495,400 257,600 Net sales Cost of goods sold Gross profit Operating expenses Selling expenses Salaries expense (€140,000 X 70%) Advertising expense Rent expense 98,000 26,400 (€24,000 x 80%) Delivery expense Utilities expense 19,200 16,700 (14,000 X 80%) Depr. exp-ste equipment Depr. exp.-deliv. equipment Store supplies expens... 11,200 9,000 6,000 ..4,000 190,500 Administrative expenses Salaries expense (€140,000 x 30%) Repair expense Rent expense 42,000 12,100 (24,000 X 20%) 4,800 Utilities expense 14,000 X 20%) ー2,800 61,700 Other income and expense Interest expense 一11.000 Net loss Totals

BELLEMY FASHION CENTER Retained Earnings Statement For the Year Ended November 30, 2010 Retained earnings, December 1, 2009 Less: Net lo Retained earnings, November 30, 2010 8,000 5,600 2.400 BELLEMY FASHION CENTER Statement of Financial Position November 30, 2010 Assets Noncurrent assets Property, plant, and equipment Store equipment Accum. depr.-store equipment Delivery equipment Accum. depr.-delivery equipment. 12,000 36,000 $85,000 27.000 58,000 48,000 94,000 Current assets Store supplies Merchandise inventory Accounts receivable Cash 1,500 45,000 33,700 Total current assets 108,900 202.900 Total assets Equity and Liabilities Equity Share capital-ordinary Retained earnings 90,000 2.400 92,400 Noncurrent Liabilities Notes payable 21,000 Current Liabilities Notes payable due next year..30,000 Accounts payable Interest payable 48,500 Total current liabilitie Total liabilities 89,500 110,500 202,900 Total equity and liabilities.

BELLEMY FASHION CENTER Retained Earnings Statement For the Year Ended November 30, 2010 Retained earnings, December 1, 2009 Less: Net lo Retained earnings, November 30, 2010 8,000 5,600 2.400 BELLEMY FASHION CENTER Statement of Financial Position November 30, 2010 Assets Noncurrent assets Property, plant, and equipment Store equipment Accum. depr.-store equipment Delivery equipment Accum. depr.-delivery equipment. 12,000 36,000 $85,000 27.000 58,000 48,000 94,000 Current assets Store supplies Merchandise inventory Accounts receivable Cash 1,500 45,000 33,700 Total current assets 108,900 202.900 Total assets Equity and Liabilities Equity Share capital-ordinary Retained earnings 90,000 2.400 92,400 Noncurrent Liabilities Notes payable 21,000 Current Liabilities Notes payable due next year..30,000 Accounts payable Interest payable 48,500 Total current liabilitie Total liabilities 89,500 110,500 202,900 Total equity and liabilities.

Answer 3

Under problem a-2, the amount for dr. and cr. is 15,000