E3-2

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Week 2
Geronimo CompanyTrial BalanceApril 30, 2012|
| Debit| Credit|
Cash| $2,100| |
Accounts Receivable| 2,750 | |
Prepaid Insurance | 1,700| |
Equipment| 8,000| |
Accounts Payable| | $ 3,500|
Property Tax Payable| | 560|
Geronimo, Capital| | 11,200|
Service Revenue| | 6,690|
Salaries Expense| 4,200| |
Advertising Expense| 1,400| |
Property Tax Expense| 1,800| |
| $ 21,950| $ 21,950|
E3-2

P3-4
(a) Nov. 30 Store Supplies Expense………………1,500
Store Supplies………………… 1,500 30 Depr. Equipment…………………...15,000
Accumulated Depreciation-
Equipment……………… 15,000
30 Interest Expense……………………11,000
Interest Payable……………….. 11,000
(b)
Bellemy Fashion Center
Adjust Trial Balance
November 30, 2012
| Debit | Credit|
Cash| 28,700| |
Accounts Receivable| 33,700| |
Merchandise Inventory| 45,000| |
Store supplies| 5,500| |
equipment| 133,000| |
Accumulated depr. – Equipment| | 24,000|
Notes Payable| | 51,000|
Accounts Payable| | 48,500|
Common Stock| | 90,000|
Retained Earning| | 8,000|
Sales| | 757,200|
Sales Returns and Allowances| 4,200| |
Cost of goods sold| 495,400| |
Salaries Expense| 140,000| |
Advertising Expense | 26,400| |
Utilities Expense| 14,000| |
Repair Expense| 12,100| |
Delivery Expense| 16,700| |
Rent Expense| 24,000| |
Store Supplies Expense| 1,500| |
Store Supply| | 1,500|
Depreciation Expense— Equipment| 15,000| |
Equipment| | 15,000|
Interest Expense| 11,000| |
Interest Payable| | 11,000|
Totals| 1,006,200| 1,006,200 |
(c)
Bellemy Fashion Center
Income Statement
For the Year Ended November 30, 2012
Sales Revenue| | | |
Sales| | | $757,200|
Less: Sales Returns And Allowances| | | 4,200|
Net Sales| | | 753,000|
Cost of goods sold| | | 495,400|
Gross Profit| | | 257,600|
Operating Expenses Selling Expenses Salaries Expense (140,000*.7)| $98,000| | | Advertising Expense| 26,400| | |
Rent Expense (24,000*.8)| 19,200| | |
Delivery Expense| 16,700| | |
Utilities Expense (14,000*.8)| 11,200| | |
Depr. Exp. Equipment| 15,000| | |
Store Supplies expense| 1,500| | |
Total selling expenses| | $188,000| |
Admin. Expenses Salaries expenses ($140,000*.3)| 42,000| | | Repair expense| 12,100| | |
Rent expense (24,000*.2)| 4,800| | |
Utilities expense (14,000*.2)| 2,800| | |
Total Admin Exp.| | $61,700| |
Total oper. Exp. | | | 249,700|
Income from operations| | | 7,900|
Other expenses and Losses Interest expense| | | 11,000| Net loss| | | ($3,100)|

Bellemy Fashion Center
Retained Earnings Statement
For the Year Ended November 30, 2012
Retained Earnings, December 1, 2011 $8,000 Less: Net Loss 3,100 Retained Earnings, November 30, 2012 $4,900 Bellemy Fashion Center

Balance Sheet
November 30, 2012
Assets|
Current Assets| | |
Cash| | $28,700| |
Accounts Receivable| | 33,700| |
Merchandise Invent.| | 45,000| |
Store Supplies| | 1,500| |
Total current Assets| | | $108,900|
Property, Plant, & Equipment| | |
Equipment| $133,000| | |
Accum. Depr. equipment| 24,000| 109,000| 109,000|
Total Assets| | | $217,900|
Liabilities and Stockholders’ Equity|
Current liabilities| | |
Notes Payable due next yr.| | $30,000| |
Accounts Payable| | 48,500| |
Interest Payable| | 11,000| |
Total current liabilities| | | $89,500|
Long-term liabilities| | |
Notes payable| | |...
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