Question

For Questions 1 and 2 The trial balance of Valdez Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. Additional Fiscal Year-End Information: a) Supplies on hand totaled $2,100. b) Depreciation is $11,100 on the equipment. c) Interest of $3,800 is accrued on notes payable at November 30. d) Inventory on hand at November 30, 2017 is $43,800.

Answer 1

Valdez Fashion Center Adjusting Enteries Date Particulars 30.11.2017 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 6200 - 2100 = 4100 Debit in $ Credit in $ 4100 4100 11100 30.11.2017 Depreciation Expense a/c Dr. To Accum. Depre - Equipment (To record depreciation) 11100 Dr. 3800 30.11.2017 Interest Expense a/c To Interest Payable (Interest expense accrued) 3800 Adjusted Trial Balance For the Month ending 30.11.2017 Adjusted Trial Bal. Post Closing Particulars Debit in $ Credit in $ Debit in $ Credit in $ Cash 9000 9000 Accounts Receivable 29400 29400 Inventory 34400 43800 Supplies 2100 2100 Equipment 132000 132000 Accumulated Depreciation-Equipment 36300 36300 Interest Payable 3800 3800 Notes Payable 51000 51000 Accounts Payable 48900 48900 Owner's Capital 89200 76300 Owner's Drawing 10200 Sales Revenue 755200 Sales Returns and Allowances 8800 Purchases 525000 Purchases Discounts 9400 Purchase Returns and Allowances 5300 Freight in 16400 Salaries and Wages Expense 139500 Advertising Expense 24100 Utilities Expenses 13500 Maintenance and Repairs Expense 12100 Rent Expense 23600 Depreciation Expense 11100 Interest Expense 3800 Supplies Expense 4100 Totals 999100 999100 216300 216300

755200 -8800 746400 34400 525000 -9400 -5300 -43800 16400 Statement of Income For the Month ending 30.11.2017 Sales Revenue Sales Returns and Allowances Net Sales Cost of Goods Sold: Opening Inventory Purchases Purchases Discounts Purchase Returns and Allowances Closing Stock Freight in Cost of goods sold Gross Profit Operating Expenses: Salaries and Wages Expense Advertising Expense Utilities Expenses Maintenance and Repairs Expense Rent Expense Depreciation Expense Supplies Expense Operating Income Non Operating Items: Interest Expense Net Loss 517300 229100 139500 24100 13500 12100 23600 11100 4100 228000 1100 -3800 -2700 Statement of Owner's Equity For the Month ending 30.11.2017 Owner's Capital Net Income 89200 -2700 86500 -10200 76300 Owner's Drawing

Balance sheet As at 30.11.2017 Assets Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Assets Current Liabilities Cash 9000 Interest Payable 3800 Accounts Receivable 29400 Notes Payable 51000 Inventory 43800 Accounts Payable 48900 103700 Supplies 2100 84300 Non Current Liabilities Non Current Assets Notes Payable Equipment 132000 Accumulated Depreciation-E -36300 95700 Owner's Equity Owner's Capital 76300 76300 Total Assets 180000 Total Liabilities & Equity 180000