The trial balance of Valdez Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.
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 income statement and a retained earnings statement for the year, and a classified as of November 30, 2020. Notes payable of $20,000 are due in January 2021.
c. Journalize the adjusting entries.
d. Journalize the closing entries.
e. Prepare a post-closing trial balance.
