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Gillespie Week 2 MBAA 603 - Tim Gillespie Week 2 Homework...

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Tim Gillespie Week 2 Homework MBAA 603 Problem 3-4 A. Journalize the adjusting entries DR. CR. 30-Nov Store Supplies Expense - $4,000.00 Store Supplies - $4,000.00 30-Nov Depreciation Expense - Store Equip $9,000.00 Accumulated Depreciation - Store Equip $9,000.00 30-Nov Depreciation Expense - Delivery Equip $6,000.00 Accumulated Depreciation - Delivery Equip $6,000.00 30-Nov Interest Expense $11,000.00 Interest Payable $11,000.00 B. Prepare an adjusted trial balance. Bellemy Fashion Center Adjusted Trial Balance 11/30/10 Dr. Cr. Cash $28,700.00 Accounts Receivable $33,700.00 Merchandise Inventory $45,000.00 Store Supplies $1,500.00 Store Equipment $85,000.00 Accumulated Depr.— Store Equip. $27,000.00 Delivery Equipment $48,000.00 Accumulated Depr.— Delivery Equip $12,000.00 Notes Payable $51,000.00 Accounts Payable $48,500.00 Common Stock $90,000.00 Retained Earnings $8,000.00 Sales $757,200.00 Sales Returns and Allowances $4,200.00 Cost of Goods Sold $495,400.00 Salaries Expense $140,000.00 Advertising Expense $26,400.00 Utilities Expense $14,000.00 Repair Expense $12,100.00 Delivery Expense $16,700.00 Rent Expense $24,000.00 Store Supplies Expense $4,000.00 Depreciation Expense - Store Equip $9,000.00 Depreciation Expense - Delivery Equip $6,000.00 Interest Expense $11,000.00 Interest Payable ________ $11,000.00 Totals $1,004,700.00 $1,004,700.00 C. Prepare a multiple-step income statement and retained earnings statement for the year and a classified balance sheet as of November 30, 2010. Bellemy Fashion Center Income Statement For Year Ended November 30, 2010 Dr. Cr. Sales revenue Sales $757,200.00 Less: Sales returns and Allowances $4,200.00 Net sales $753,000.00 Cost of goods sold $495,400.00 Gross profit $257,600.00 Operating expenses Selling expenses Salaries expense ($140,000 * 70%) $98,000.00 Advertising expense $26,400.00
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