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Financial Accounting

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

BRENNAN FASHION CENTER
Trial Balance
November 30, 2002
Debit Credit
Cash $ 28,700
Accounts Receivable 33,700
Merchandise Inventory 45,000
Store Supplies 5,500
Store Equipment 85,000
Accumulated Depreciation?Store Equipment $ 18,000
Delivery Equipment 48,000
Accumulated Depreciation?Delivery Equipment 6,000
Notes Payable 51,000
Accounts Payable 48,500
Common Stock 80,000
Retained Earnings 30,000
Dividends 12,000
Sales 759,200
Sales Returns and Allowances 4,200
Cost of Goods Sold 497,400
Salaries Expense 140,000
Advertising Expense 26,400
Utilities Expense 14,000
Repair Expense 12,100
Delivery Expense 16,700
Rent Expense 24,000
Totals $992,700 $992,700

Adjustment data:
1. Store supplies on hand totaled $3,500.
2. Depreciation is $9,000 on the store equipment and $7,000 on the delivery equipment.
3. Interest of $11,000 is accrued on notes payable at November 30.
4. Merchandise inventory actually on hand is $44,400.
Other data:
1. Salaries expense is 70% selling and 30% administrative.
2. Rent expense and utilities expense are 80% selling and 20% administrative.
3. $30,000 of notes payable are due for payment next year.
4. Repair expense is 100% administrative.

Instructions
*(a) Enter the trial balance on a work sheet, and complete the work sheet.
(b) Prepare a multiple-step income statement and a retained earnings statement for the year
and a classified balance sheet as of November 30, 2002.
(c) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e) Prepare a post-closing trial balance.

Attachments

Solution Preview

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BRENNAN FASHION CENTER
Post-closing Trial Balance
For the Year Ended November 30, ...

Solution Summary

This solution is comprised of a detailed explanation to answer the request of the assignment in excel file.

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