Question: The Deluxe Store is located in midtown
The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fi scal year on November 30, 2019, the following accounts appeared in two of its trial balances.
Instructions
(a) Prepare a multiple-step income statement, a retained earnings statement, and a classify ed balance sheet. Notes payable are due in 2022.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.
Transcribed Image Text:
Unadjusted Adjusted $ 29,000 37,000 3,500 Unadjusted Adjusted $ 25,200 Inventory 30,500 Notes Payable 45,000 26,000 40,000 507,000 10,000 6,500 146,000 11,000 7,000 6,400 8,000 $ 29,000 37,000 $ 25,200 30,500 34,000 26,000 40,000 507,000 10,000 6,500 146,000 Accounts Payable Accounts Receivable Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Accumulated Depr.-Equip. Cash 10,500 2,500 2,500 Common Stock Cost of Goods Sold 15,000 15,000 Dividends 61,700 96,000 6,500 61,700 96,000 Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense 11,000 4,500 8,000 700,000 8,500 8,000 700,000 8,500 Sales Revenue 6,400 8,000 Interest Revenue Utilities Expense
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