Name: Date:

Instructor: Course:
Accounting Principles, Ninth Edition by Weygandt, Kieso, and Kimmel
Solving Accounting Principles Problems Using Microsoft Excel for Windows by Rex A Schildhouse
P5-8A The trial balance of Terry Manning Fashion Center contained the following accounts at December 31, the end of the company's fiscal year:

STARZ DEPARTMENT STORE

Worksheet
For the Year Ended December 31, 2014
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash $23,800 23,800 23,800 0
Accounts Receivable 50,300 50,300 50,300 0
Inventory 75,000 75,000 75,000 0
Prepaid Insurance 9,600 7,200 2,400 2,400 0
Buildings 290,000 290,000 290,000 0
Equipment 110,000 110,000 110,000 0
Accumulated Depr - Buildings 42,100 10,400 52,500 0 52,500
Accumulated Depr - Equip $29,600 13,300 42,900 0 42,900
Accounts Payable 79,300 1,000 80,300 0 80,300
Mortagage Payable 80,000 80,000 0 80,000
Property Taxes Payable 4,800 4,800 0 4,800
Sales Commissions Payable 4,300 4,300 0 4,300
Interest Payable 5,600 5,600 0 5,600
Share Capital-Ordinary 112,000 112,000 0 112,000
Retained earnings 64,600 64,600 64,600 0
Dividends 24,000 24,000 24,000 0
Sales Revenue 724,000 724,000 0 724,000
Sales Returns and Allowance 8,000 8,000 8,000 0
Interest Revenue 4,000 4,000 0 4,000
Cost of Goods Sold 412,700 412,700 412,700 0
Utilities Expense 11,000 1,000 12,000 12,000 0
Insurance Expense 7,200 7,200 7,200 0
Interest Expense 3,000 5,600 8,600 8,600 0
Property Tax Expense 4,800 4,800 4,800 0
Salaries and Wages Expense 108,000 108,000 108,000 0
Sales Commissions Expense 10,200 4,300 14,500 14,500 0
Depreciation Expense 23,700 23,700 23,700 0
Totals $1,200,200 $1,071,000 $46,600 $46,600 $1,239,600 $1,110,400 599,500 728,000 640,100 382,400
Net Income 128,500 (257,700)
Totals $728,000 $728,000 $382,400 $382,400

Key: (a) Supplies used, (b) Depreciation expense (c) Accrued interest payable, (d) Adjustment of inventory.

STARZ DEPARTMENT STORE STARZ DEPARTMENT STORE

Income Statement Statement of Financial Position

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 Name: Date:
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For the Year Ended December 31, 2014 December 31, 2014
Sales Revenues Assets
Sales Revenue $724,000 Current assets
Sales Returns and Allowances 8,000 Cash $23,800
Net Sales 716,000 Accounts Receivable $50,300
Cost of Goods Sold 412,700 Inventory $75,000
Gross Profit 303,300 Prepaid Insurance $2,400
Operating Expenses Total Current Assets $151,500
Utilities Expense 12,000 Property, plant, and equipment
Insurance Expense 7,200 Buildings $290,000
Property Tax Expense 4,800 Equipment $110,000
Salaries and Wages Expense 108,000 Accumulated Depr - Buildings 52,500
Sales Commissions Expense 14,500 Accumulated Depr - Equip 42,900 304,600 304,600
Depreciation Expense 23,700 Total assets $456,100

Liabilities and Owner’s Equity

Total selling expenses 170,200 Current liabilities
Loss from Operations 133,100 Accounts Payable $80,300
Other expenses and losses Mortagage Payable $16,000
Interest Revenue 4,000 Property Taxes Payable 4,800
Interest Expense 8,600 Sales Commissions Payable 108,000
Net income (Net loss) $128,500 Interest Payable 14,500
Total Current Liabilities 223,600
STARZ DEPARTMENT STORE
Retained Earning Statement Long-term liabilities
For the Year Ended December 31, 2014 Mortgage Payable 64,000
Retained earnings, Dec 1, 2014 $64,600 Total Liabilities 287,600
Net Loss $128,500
Dividends 24,000 152,500 Equity
Retained earnings, December 31, 2014 ($87,900) Share Capital-Ordinary 4,800

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 Name: Date:
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Retained earnings, December 31, 2014 (87,900)
Total Equity ($83,100)
Total Liabilities and Equity $204,500

(c) Journalize the adjusting entries.

Dec-31 Insurance Expense 7,200
Prepaid Insurance 7,200

Dec-31 Depreciation Expense 23,700

Accumulated Depr - Buildings 10,400
Accumulated Depr - Equip 13,300

Dec-31 Utilities Expense 1,000 (d) Journalize the closing entries.

Account Payable 1,000
Dec-31 Sales Revenue 724,000
Dec-31 Property Tax Expense 4,800 Income Summary 724,000
Property Taxes Payable 4,800
Dec-31 Income Summary 8,000
Dec-31 Sales Commissions Expense 4,300 Sales Returns and Allowances 8,000
Sales Commissions Payable 4,300

Dec-31 Interest Expense 5,600

Interest Payable 5,600
Dec-31 Income Summary 178,800
(e) Prepare a post-closing trial balance. Utilities Expense 12,000
STARZ DEPARTMENT STORE Insurance Expense 7,200
Post-Closing Trial Balance Property Tax Expense 4,800
For the Year Ended December 31, 2014 Salaries and Wages Expense 108,000
Debit Credit Sales Commissions Expense 14,500
Cash $23,800 Depreciation Expense 23,700
Accounts Receivable $50,300 Interest Expense 8,600
Inventory $75,000
Prepaid Insurance $2,400 Dec-31 Income Summary 128,500
Buildings 290,000 Retained Earnings 128,500
Equipment 110,000
Accumulated Depr - Buildings 52,500 Dec-31 Retained Earnings 24,000
Accumulated Depr - Equip 42,900 Dividends 24,000
Accounts Payable 80,300
Mortagage Payable 16,000
Property Taxes Payable 4,800
Sales Commissions Payable 108,000
Interest Payable 14,500
Share Capital-Ordinary 4,800
Retained earnings 87,900
$775,100 $188,100

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