P5-5A Complete accounting cycle beginning with a worksheet

The trial balance of Valdez Fashion Center contained the following account at November 30, the end of the compan

VALDEZ FASHION CENTER

Trial Balance
November 30, 2014
Debit Credit
Cash $ 8,700
Accounts Receivable 30,700
Inventory 44,700
Supplies 6,200
Equipment 133,000
Accumulated Depreciation - Equipment $ 28,000
Notes Payable 51,000
Accounts Payable 48,500
Owner's Capital 90,000
Owner's Drawings 12,000
Sales Revenue 755,200
Sales Returns and Allowances 8,800
Cost of Goods Sold 497,400
Salaries and Wages Expense 140,000
Advertising Expense 24,400
Utilities Expense 14,000
Maintenance and Repairs Expense 12,100
Freight-Out 16,700
Rent Expense 24,000
Totals 972,700 972,700

Adjustment Data:
1. Supplies on hand totaled $2,000.
2. Depreciation is $11,500 on the equipment.
3. Interest of $4,000 is accrued on notes payable at November 30.
4. Inventory actually on hand is $44,400.

Instructions
(a) Enter the trial balance on a worksheet, and complete the worksheet.
(b) Prepare a multiple-step i
a classified balance sheet as of November 30, 2014. Notes payable of $20,000 are due in January 201
(c ) Journalize the adjusting entries.
(d) Journalize the closing entries.
(e ) Prepare a post-closing trial balance.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?"
(a) VALDEZ FASHION CENTER
Worksheet
For the Year Ended November 30, 2014

Account Titles Trial Balance Adjustments

Dr. Cr. Dr.

Cash $ 8,700
Accounts Receivable 30,700
Inventory 44,700
Supplies 6,200
Equipment 133,000
Accumulated Depreciation - Equipment 28,000
Notes Payable 51,000
Accounts Payable 48,500
Owner's Capital 90,000
Owner's Drawings 12,000
Sales Revenue 755,200
Sales Returns and Allowances 8,800
Cost of Goods Sold 497,400 (d) 44,400
Salaries and Wages Expense 140,000
Advertising Expense 24,400
Utilities Expense 14,000
Maintenance and Repairs Expense 12,100
Freight-Out 16,700
Rent Expense 24,000
Totals 972,700 972,700

Supplies Expense (a) 2,000

Depreciation Expense (b) 11,500
Interest Expense ( c) 4,000
Interest Payable
Totals 61,900
Net Loss
Totals

(b) VALDEZ FASHION CENTER

Income Statement
For the Year Ended November 30, 2014
Sales Revenue
Sales revenue $755,200
Less: Sales returns and allowances 8,800
Net sales 746,400
Cost of goods sold 541,800
Gross profit 213,400
Operating expenses
Salaries and wages expense $140,000
Advertising expense 24,400
Rent expense 24,000
Freight-out 16,700
Utilities expense 14,000
Maintenance and repair expense 12,100
Depreciation expense 11,500
Supplies expense 2,000
Total operating expenses 244,700
Income from operations (31,300)
Other expenses and losses
Interest expense 4,000
Net loss ($35,300)

VALDEZ FASHION CENTER

Owner's Equity Statement
For the Year Ended November 30, 2014
Owner's Capital, December 1, 2013 $755,200
Less: Net loss ($35,300)
Drawings 12,000 778,500
Owner's Capital, November 30, 2014 ($23,300)

VALDEZ FASHION CENTER

Balance Sheet
November 30, 2014
Assets
Current assets
Cash $8,700
Accounts Receivable 30,700
Inventory 300
Supplies 4,200
 Total current assets $43,900
Property, plant and equipment
Equipment $133,000
Accumulated depreciation - 39,500 172,500
equipment
Total assets $216,400

Liabilities and Owner's Equity

Current liabilities
Notes payable (due next year)
Account payable 48,500
Interest payable 4,000
Total current liabilities $52,500
Long-term liabilities
Notes payable 51,000
Total liabilities 103,500
Owner's equity
Owner's capital (23,300)
Total liabilities and owner's equity $29,200

(c ) Adjusting entries:

Nov. 30 Supplies Expense 2,000

Supplies 2,000

Nov. 30 Depreciation Expense 11,500

Accumulated Depreciation-Equip. 11,500

Nov. 30 Interest Expense 4,000

Interest Payable 4,000

Nov. 30 Cost of Goods Sold 44,400

Inventory 44,400

(d) Closing entries:

Nov. 30 Sales Revenue 755,200

Income Summary 755,200

Nov. 30 Income Summary 799,300

 Sales Return and Allowance 8,800
Cost of Goods Sold 541,800
Salaries and Wage Expense 140,000
Advertising Expense 24,400
Rent Expense 24,000
Freight-Out 16,700
Utilities Expense 14,000
Maintenance and Repair Expense 12,100
Depreciation Expense 11,500
Supplies Expense 2,000
Interest Expense 4,000

Nov. 30 Owner's Capital 44,100

Income Summary 44,100

Nov. 30 Owner's Capital 778,500

Drawings 778,500

(e ) VALDEZ FASHION CENTER

Post-closing Trial Balance
November 30, 2014
Debit Credit
Cash $8,700
Accounts Receivable 30,700
Inventory 300
Supplies 4,200
Equipment 133,000
Less: Accumulated Depreciation - Equipment $39,500
Notes payable 51,000
Accounts payable 48,500
Interest payable 4,000
Owner's Capital -23,300
$176,900 $119,700
the end of the company's fiscal year.

0 are due in January 2015.

mula in cells with a "?" .

FASHION CENTER
Worksheet
ded November 30, 2014
Adjusted Income
Adjustments Trial Balance Statement Balance Sheet
Cr. Dr. Cr. Dr. Cr. Dr. Cr.

8,700 8,700
30,700 30,700
(d) 44,400 300 300
(a) 2,000 4,200 4,200
133,000 133,000
(b) 11,500 39,500 39,500
51,000 51,000
48,500 48,500
90,000 90,000
12,000 12,000
755,200 755,200
8,800 8,800
541,800 541,800
140,000 140,000
24,400 24,400
14,000 14,000
12,100 12,100
16,700 16,700
24,000 24,000

2,000 2,000
11,500 11,500
4,000 4,000
( c) 4,000 4,000 4,000
61,900 988,200 988,200 799,300 755,200 188,900 233,000
-44,100 -44,100
799,300 799,300 233,000 233,000
P5-1B Journalize purchase and sales transactions under a perpetual inventory system
Urdan Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers.
At the end of June, Urdan's inventory consisted of suitcases costing $1,200. During the month of July,
the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $1,800 from Hostad Manufacturers, FOB destination,
terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight
on this date.
3 Sold suitcases on account to Kaye Satchels for $2,000. The cost of suitcases sold is $1,200.
9 Paid Hostad Manufacturers in full.
12 Received payment in full from Kaye Satchels.
17 Sold suitcases on account to The Going Concern for $1,800. the cost of the suitcases sold
was $1,080.
18 Purchased suitcases on account for $1,900 from Nelson Manufacturers, FOB shipping point,
terms 1/10,n/30. The appropriate party also made a cash payment of $125 for freight
on this date.
20 Received $300 credit (including freight) for suitcases returned to Nelson Manufacturers.
21 Received payment in full from The Going Concern.
22 Sold suitcases on account to Wopat's for $2,250. the cost of suitcases sold was $1,350.
30 Paid Nelson Manufacturers in full.
31 Granted Wopat's $200 credit for suitcases returned costing $120.

Urdan's chart of accounts includes the following: No.101 Cash, No.112 Accounts Receivable,
No.120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No.412 Sales Returns and Allowances, No. 414
Sales Discounts, and No. 595 Cost of Goods Sold.

Instructions
Journalize the transactions for the month of July for Urdan using a perpetual inventory system.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

July 1 Inventory 1,800

Accounts Payable 1,800

3 Accounts Receivable 2,000

Sales Revenue 2,000
`

3 Cost of Goods Sold 1,200

Inventory 1,200
9 Accounts Payable 1,700
Inventory 34
Cash 1,666

12 Cash 1,980
Sales Discount 20
Accounts Receivable 2,000

17 Accounts Receivable 1,800

Sales Revenue 1,800

17 Cost of Goods Sold 1,080

Inventory 1,080

18 Inventory 1,900
Accounts Payable 1,900

18 Inventory 125
Cash 125

20 Accounts Payable 300

Inventory 300

21 Cash 1,782
Sales Discount 18
Accounts Receivable 1,800
`

22 Accounts Receivable 2,250

Sales Revenue 2,250

22 Cost of Goods Sold 1,350

Inventory 1,350
30 Accounts Payable 1,600
Cash 1,600

31 Sales Returns and Allowances 200

Accounts Receivable 200

31 Inventory 120
Cost of Goods Sold 120
 its customers.

nd Allowances, No. 414