Big Box 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 fiscal year on November 30, 2017, the following accounts appeared in two of its trial balances.

Instructions
(a) Prepare a multiple-step income statement, an owner€™s equity statement, and a classified balance sheet. Notes payable are due in 2020.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that arenecessary.

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Unadjusted Adjusted Unadjusted Adjusted S 37,000 S 37,000 101,700 101,700 10,000 3,500 2,500 2,500 15,00015,000 11,000 Salaries and Wages Expense 96,000 96,000 720,000 720,000 6,500 11,000 4,500 8,000 8,500 Accounts Payable Accounts Receivable 25,200 25,200 Notes Payable 30,500 Owner's Capital 30,500 Accumulated Depr-Equip. 34,000 45,000 Owner's Drawings 26,000 518,000 6,500 10,000 10,500 Cash Cost of Goods Sold Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue Inventory 26,000 Prepaid Insurance 518,000 Property Tax Expense 6,500 Property Taxes Payable 146,000 146,000 Rent Expense 6,400 2,000 32,000 7,000 Sales Revenue 6,400 Sales Commissions Expense 2,000 Sales Commissions Payable 32,000 Sales Returns and Allowances 8,000 8,500 Utilities Expense