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Question3
Presented below is the adjusted trial balance of Katie’s Pet Supplies as at its fiscal year end, November 30, 2017. All accounts are their normal balance (debit or credit). Katie’s uses the periodic inventory system.
Accounts payable………………………. $ 32,310 K. Milani, Capital………………….. $119,480
Accounts receivable………………………. 13,770 K. Milani, Drawings………………. 12,000
Accum. depreciation, Building . 61,200Long-term note receivable………………………. 15,000
Accum. depreciation, equipment……… 19,880 Merchandise inventory………….. 34,360
Advertising expense………………………… 1,000 Mortgage payable, ……………… 106,000
Cash…………………………………………….. 7,500 Prepaid Insurance……………….. 4,500
Building……………………………………… 175,000 Property Tax expense…………… 3,500
Purchases………………………………….. 634,700 Salaries expense…………………. 122,000
Depreciation Expense……………………. 14,000 Salaries payable………………….. 8,500
Equipment…………………………………… 57,000 Sales discounts…………………… 8250
Freight-out expense………………………… 8,200 Sales returns and allowances… 9,845
Insurance expense…………………………. 9,000 Sales revenue…………………….. 872,000
Interest expense…………………………….. 5,300 Unearned Revenue……………… 3,000
Land……………………………………… 85,000 Utilities Expense ………………….. 19,800
Freight in………………………………… 5,060 Rent revenue………………….. 2,800
Purchase discount……………….. 6,300 Purchase return and Allowance 13,315
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