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
30-Nov-02
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.