Assessment 1: Accounting Conventions and Accounting Cycle

Accounting Cycle Steps Preparation Data Sheet

The trial balance of Dorothy’s Young Fashions contained the following account balances on July 31, 2018, the end of the company’s fiscal year:

Dorothy's Young Fashions
Trial Balance
July 31, 2018
		Debit	Credit
Cash		$14,685
Accounts Receivable		18,535
Merchandise Inventory		24,750
Store Supplies		3,025
Store Equipment		46,750
Accumulated Depreciation - Store Equipment			$9,900
Delivery Equipment		26,400
Accumulated Depreciation - Delivery Equipment			3,300
Notes Payable			28,050
Accounts Payable			26,675
Common Stock			49,500
Retained Earnings			4,400
Sales			416,460
Sales Returns and Allowances		2,310
Cost of Goods Sold		273,570
Salaries Expense		77,000
Advertising Expense		14,520
Utilities Expense		7,700
Repair Expense		6,655
Delivery Expense		9,185
Rent Expense		13,200
		$538,285	$538,285

Adjusting Information

a) Stores Supplies on hand totaled $1,925.

b) Depreciation was $4,950 on the Store Equipment and $3,850 on the Delivery Equipment.

c) Interest of $6,050 is accrued on Notes Payable at July 31, 2018.

Additional Information

a) Salaries Expense is 70% selling expense and 30% administrative expense.

b) Rent Expense and Utilities Expense are allocated 80% to selling expenses and 20% to administrative expenses.

c) $16,500 of the Notes Payable will be due for payment during the next year.

d) Repair Expense is 100% administrative.