The following trial balance and the other information relates to Happy Fashion Center at the end of the company’s fiscal year. Happy Fashion Center TRIAL BALANCE December 31, 2018
Cash
Accounts Receivable
Inventory
Accounts Payable
Supplies
Equipment
Accumulated Depreciation – Equipment Notes Payable
Unearned Rent Revenue
Capital
Retained Earnings
Rent Revenue
Sales Revenue
Sales Returns and Allowances
Cost of Goods Sold
Rent Expense
Salaries and Wages Expense
Debit
$45,250 33,700 45,000
5,500 133,000
46,700 495,400 24,000 140,000 968,550
Credit
$48,500
24,000 51,000 5,000 90,000 8,000 1,550 740,500
968,550
Adjustments:
1. Supplies on hand totaled $1,500.
2. Equipment is being depreciated at 10% per year.
3. Interest of $11,000 is accrued on notes payable at December 31.
4. Accrued Salaries Payable $4,000.
5. Rent related to unearned rent revenue of $3,550 was earned.
Required:
a) Prepare the adjusting entries as of December 31, 2018. (Omit explanations)
b) Prepare an adjusted trial balance
c) Prepare the Income Statement for December 31, 2018
(5 marks) (10 marks) (10 marks)