Prepare a multiple-step income statement a retained

Question

Maine Department Store is located near the Village Shopping Mall. At the end of the company's calendar year on December 31, 2011, the following accounts appeared in two of its trial balances.

	Unadjusted	Adjusted		Unadjusted	Adjusted
Accounts Payable	$ 79,300	$ 79,300	Interest Payable		$ 8,000
Accounts Receivable	50,300	50,300	Interest Revenue	$ 4,000	4,000
Accumulated Depr.-Building	42,100	52,500	Merchandise Inventory	75,000	75,000
Accumulated Depr.-Equipment	29,600	42,900	Mortgage Payable	80,000	80,000
Building	190,000	190,000	Office Salaries Expense	32,000	32,000
Cash	23,800	23,800	Prepaid Insurance	9,600	2,400
Common Stock	116,600	116,600	Property Tax Expense		4,800
Cost of Goods Sold	412,700	412,700	Property Taxes Payable		4,800
Depr. Expense-Building		10,400	Retained Earnings	60,000	60,000
Depr. Expense-Equipment		13,300	Sales Salaries Expense	76,000	76,000
Dividends	28,000	28,000	Sales	628,000	628,000
Equipment	110,000	110,000	Sales Commissions Expense	10,200	14,500
Insurance Expense		7,200	Sales Commissions Payable	60,000	4,300
Interest Expense	3,000	11,000	Sales Returns and Allowances	8,000	8,000
			Utilities Expense	11,000	12,000
			Utilities Expense Payable		1,000

Instructions

(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. $20,000 of the mortgage payable is due for payment next year.

(b) Journalize the adjusting entries that were made.

(c) Journalize the closing entries that are necessary.