Chapter 5, Problem P5.40BPGB

Preparing a multi-step income £ and preparing a pn„........ ... .....

The adjusted trial bal.iiae Rab.l Re.,,,

RACHCl RLY DANCE COMPANY

Adjusted Tried Balance

April 30, 2016

Account Title

Balance

DebitCredit Cash $

3,700 Accounts Receivable 38,100 Merchandise Inventory 17,600 Office Supplies 700 Furniture 39,800 Accumulated Depreciation-Furniture 1 , 8,200 Accounts Payable 13,600 Salaries Payable 500 Unearned Revenue 7,100 Notes Payable, long-term 17,000 Rey, Capital 34,700 Rey, Withdrawals 42,500 Sales Revenue 180,000 Sales Returns and Allowances 6,000 Sales Discounts 2,500 Cost of Goods Sold 72,000 Selling Expense 18,900 Administrative Expense 18,000 Interest Expense 1,300 Total S 261,100 $ 261,100

Requirements

1. Prepare Rachel Rey’s multi-step income statement for the year ended April 30, 2016.
2. Journalize Rachel Rey’s closing entries.
3. Prepare a post-closing trial balance as of April 30, 2016.