Accounting for Merchandising Operations

Adjustment data:

1. Supplies on hand totaled $2,600.
2. Depreciation is $ 11,500 on the equipment.
3. Interest of $3,800 is accrued on notes payable at November 30.
4. Inventory actually on hand is $44,400.

Instructions

1. Enter the trial balance on a worksheet, and complete the worksheet.
2. Prepare a multiple-step income statement and an owners equity statement for the year, and a classified balance sheet as of November 30, 2019. Notes payable of $20,000 are due in January 2020.
3. Journalize the adjusting entries.
4. Journalize the closing entries.
5. Prepare a post-closing trial balance.

Solution