Accounting for Merchandising Operations

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

Adjustment data:

  1. Supplies on hand totaled $2,600.
  2. Depreciation is $ 11,500 on the equipment.
  3. Interest of $3,800 is accrued on notes payable at November 30.
  4. Inventory actually on hand is $44,400.

Instructions

  1. Enter the trial balance on a worksheet, and complete the worksheet.
  2. Prepare a multiple-step income statement and an owners equity statement for the year, and a classified balance sheet as of November 30, 2019. Notes payable of $20,000 are due in January 2020.
  3. Journalize the adjusting entries.
  4. Journalize the closing entries.
  5. Prepare a post-closing trial balance.

Solution

a.
Gaolee Fashion Center
Worksheet
For the Year Ended November 30, 2019
b.
Gaolee Fashion Center
Income Statement (Multi-Step)
For the Year Ended November 30, 2019
Gaolee Fashion Center
Owner's Equity Statement
For the Year Ended November 30, 2019

Gaolee Fashion Center
Balance Sheet
November 30, 2019

 

c.
Gaolee Fashion Center
Adjusting Journal Entries

 

d.
Gaolee Fashion Center
Closing Journal Entries

 

e.
Gaolee Fashion Center
Post-closing Trial Balance
November 30, 2019
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