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.

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 arenecessary.

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Unadjusted Adjusted Unadjusted Adjusted S 79,300 79,300 Intcrest Payable S 8,000 4.000 75,000 80,000 32,000 2,400 4,800 4,800 60,000 50,300 Interest Revenue 52,500 Merchandise Inventory S 4,000 75,000 80,000 32,000 9,600 Accumulated Depr-Building 42,100 Accumulated Depr-Eqipmen 29,600 Building 190,000 Office Salaries Expense 190,000 23,800 23,800 Prepaid Insurance 116,600 6,600 Property Tax Expense 412.700 412,700 Property Taxes Payable Common Stock Cost of Goods Sold Depr. Expense-Building Depr. Expense-Equipment Dividends 10,400 Retained Earnings 3,300 Sales Salaries Expense 28,000 Sales 60,000 76,000 28,000 110,000 110,000 Sales Commissions Expense 628,000 628.000 14.500 10,200 Insurance Expense Interest Expense 7,200 Sales Commissions Payable 11,000 Sales Returns and Allowancs 8,000 3,000 8,000 Utilities Expense Utilities Expense Payable 11,000 1,000