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.