Acc557 Financial Accounting: P5-3A Starz Department Store is located near the Towne Shopping Mall

Acc557 Financial Accounting

P5-3A
Starz Department Store is located near the Towne Shopping Mall. At the end of the company’s calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.
Unadjusted Adjusted Unadjusted Adjusted
Accounts payable 79,300 80,300 Interest Revenue 4,000 4,000
Accounts receivable 50,300 50,300 Inventory 75,000 75,000
Accumulated Depr - Buildings 42,100 52,500 Mortgage Payable 80,000 80,000
Accumulated Depr - Equipment 29,600 42,900 Prepaid insurance 9,600 2,400
Buildings 290,000 290,000 Property tax expense 4,800
Cash 23,800 23,800 Property tax payable 4,800
Common stock 112,000 112,000 Retained earnings 64,600 64,600
Cost of goods sold 412,700 412,700 Salaries and Wages expense 108,000 108,000
Depreciation expense 23,700 Sales commissions expense 10,200 14,500
Dividends 24,000 24,000 Sales commissions payable 4,300
Equipment 110,000 110,000 Sales returns and allowances 8,000 8,000
Insurance expense 7,200 Sales revenue 724,000 724,000
Interest expense 3,000 8,600 Utilities expense 11,000 12,000
Interest payable 5,600

Instructions:
(a) Prepare a multiple-step income statement (List other revenues before other expenses.), a retained earnings statement (List items that will increase retained earnings first.), and a classified balance sheet. $16,000 of the mortgage payable is due for payment next year. (List current assets in order of liquidity. Property, plant and equipment list in order of land, buildings and equipment.)
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.
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