Question

Problem 3-04 The trial balance of Whispering Fashion Center contained the following accounts at November 30, the end of the company's fiscal year. Credit 48,300 WHISPERING FASHION CENTER TRIAL BALANCE NOVEMBER 30, 2020 Debit Cash $33,150 Accounts Receivable 37,000 Inventory Supplies 8,800 Equipment 139,600 Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Sales Revenue Sales Returns and Allowances 4,200 Cost of Goods Sold 495,400 Salaries and Wages Expense 138,600 Advertising Expense 27,550 Utilities Expenses 15,400 Maintenance and Repairs Expense 12,100 Delivery Expense 16,700 Rent Expense 25,150 Totals $1,001,950 $26,300 54,300 51,800 93,300 11,300 764,950 $1,001,950

Answer 1

No. Date Credit ($) Journal Account Titles and Explanation 30-Nov Supplies expense (8800-4800) Supplies (To record the supplies expense incurred) Debit ($) 4,000 4,000 16,725 30-Nov Depreciation expense-equipment Accumulated depreciation-equipment (To record the depreciation expense on equipment) 16,725 10,990 30-Nov Interest expense Interest payable (To record the interest expense accrued) 10,990

Credits WHISPERING FASHION CENTER Adjusted Trial Balance As on November 30, 2020 Account Title Debits Cash 33,150 Accounts receivable 37,000 Inventory 48,300 Supplies 4,800 Equipment 139,600 Accumulated depreciation Equipment (26300+16725) Notes Payable Accounts payable Common stock Retained earnings Sales revenue Sales return and allowances 4,200 Cost of goods sold 495,400 Salaries and wages expense 138,600 Advertising expense 27,550 Utilities expense 15,400 Maintenance and reapairs expense 12,100 Delivery expense 16,700 Rent expense 25,150 Supplies expense 4,000 Depreciation expense-equipment 16,725 Interest expense 10,990 Interest payable $ 1,029,665 $ 43,025 54,300 51,800 93,300 11,300 764,950 10,990 1,029,665

764,950 4,200 495,400 265,350 WHISPERING FASHION CENTER Multi-Step Income Statement For the Year Ended November 30, 2020 Sales revenue Less: Sales return and allowances Less: Cost of goods sold Gross income Less: Expenses: Administrative expense: Salaries and wages expense (30%*138600) 41,580 Advertising expense 27,550 Utilities expense (20%*15400) 3,080 Rent expense (20%*25150) 5,030 Supplies expense 4,000 Depreciation expense-equipment 16,725 Maintenance and repairs expense 12,100 Total office & administrative expense Selling expense: Salaries and wages expense (70%*138600) 97,020 Delivery expense 16,700 Utilities expense (80%*15400) 12,320 Rent expense (80%*25150) 20,120 Total selling expense Operating income Less: Interest expense Net income $ 110,065 146,160 9,125 10,990 (1,865) $

WHISPERING FASHION CENTER Retained Earnings Statement For the Year Ended November 30, 2020 Retained Earnings 11,300 Beginning Balance Add: Net income Ending Balance (1,865) 9,435 $

33,150 37,000 48,300 4,800 123,250 WHISPERING FASHION CENTER Balance Sheet For the Year Ended November 30, 2020 Assets Current assets: Cash Accounts receivable Inventory Supplies Total current assets Fixed assets: Equipment 139,600 Less: Accumulated depreciation-Equipment 43,025 Total fixed assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Notes Payable-short term Interest payable Total current liabilities Long-term liabilities: Notes payable-long term (54300-30000) Total long-term liabilities Shareholders' equity Common stock Retained earnings Total Shareholders' equity Total liabilities and shareholders' Equity 96,575 96,575 219,825 $ 51,800 30,000 10,990 92,790 24,300 24,300 93,300 9,435 102,735 219,825 $ As per policy, I can solve first four sub parts of a question.