Assessment 1: Accounting Conventions and Accounting Cycle

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Assessment 1

DOROTHY’S YOUNG FASHIONS
Adjusted Trial Balance
July 31, 2018
	Dr.	Cr.
Cash
Accounts receivable
Merchandise inventory
Store supplies
Store equipment
Accumulated depr.—store Equipment
Delivery equipment
Accumulated depr.—delivery Equipment
Notes payable
Accounts payable
Common stock
Retained earnings
Sales
Sales returns and allowances
Cost of goods sold
Salaries expense
Advertising expense
Utilities expense
Repair expense
Delivery expense
Rent expense
Store supplies expense
Depreciation expense—store equipment
Depreciation expense—delivery equipment
Interest expense
Interest payable
Totals

DOROTHY’S YOUNG FASHIONS
Income Statement
For the Year Ended July 31, 2018
Sales revenue
Sales
Less: Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
Operating expenses
Selling expenses
Salaries expense

Advertising expense
Rent expense

Delivery expense
Utilities expense

Depr. exp.—store equipment
Depr. exp.—deliv. equipment
Stores supplies expense
Total selling expenses
Administrative expenses
Salaries expense

Repair expense
Rent expense

Utilities expense

Total admin. expenses
Total oper. expenses
Income from operations
Other expenses and losses
Interest expense
Net loss

DOROTHY’S YOUNG FASHIONS
Retained Earnings Statement
For the Year Ended July 31, 2018
Retained earnings, August 1, 2017
Less: Net loss
Retained earnings, July 31, 2018
DOROTHY’S YOUNG FASHIONS Balance Sheet JULY 31, 2018
Assets
Current assets
Cash
Accounts receivable
Merchandise inventory
Store supplies
Total current assets
Property, plant, and equipment
Store equipment
Accum. depr.—store equipment
Delivery equipment
Accum. depr.—delivery equipment
Total assets
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable due next year
Accounts payable
Interest payable
Total current liabilities
Long-term liabilities
Notes payable
Total liabilities
Stockholders’ equity
Common stock
Retained earnings
Total liabilities and stockholders’ equity

E. Post-Closing Trial Balance DOROTHY’S YOUNG FASHIONS
Post-Closing Trial Balance
July 31, 2018
	Debit	Credit
Cash
Accounts receivable
Merchandise inventory
Store supplies
Store equipment
Accumulated depreciation—store equipment
Delivery equipment
Accumulated depreciation—delivery Equipment
Notes payable
Accounts payable
Interest payable
Common stock
Retained earnings