Question

The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. GAOLEE FASHION CENTER Trial Balance November 30, 2017 Debit Credit Cash $ 20,700 Accounts Receivable 30,700 Inventory 44,700 Supplies 6,200 Equipment 133,000 Accumulated Depreciation—Equipment $ 28,000 Notes Payable 60,000 Accounts Payable 48,500 Owner’s Capital 93,000 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 $984,700 $984,700 Adjustment data. 4. Prepare a classified balance sheet as of November 30, 2017. Notes payable of $20,000 are due in January 2018. (List Current Assets in order of liquidity.) 5. Journalize the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 6. Journalize the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 7. Prepare a post-closing trial balance.

Answer 1

ANSWER

4).

GAOLEE FASHION CENTER
Balance Sheet
November 30, 2017
Assets
Current assets:
Cash	20700
Accounts receivable	30700
Inventory	44400
Supplies	2600
Total current assets		98400
Property, plant, and equipment
Equipment	133000
Accumulated depreciation-equipment	-39500	93500
Total assets		191900
Liabilities and Owner's Equity
Current liabilities:
Accounts payable	48500
Notes payable (current portion)	20000
Interest payable	3800
Total current liabilities		72300
Long-term liabilities
Notes payable		40000
Total liabilities		112300
Owner's Equity
Owner's capital		79600
Total liabilities and owner's equity		191900