Starz Department Store, Ltd. is located near the Towne Shopping Mall. At the end of the company's calendar year on December 31, 2017, the following accounts appeared in two of its trial balances.

Instructions
(a) Prepare an income statement, a retained earnings statement, and a classified statement of financial position. £16,000 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.

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Unadjusted Adjusted Unadjusted Adjusted £ 75,000£ 75,000 80,000 2,400 4,800 4,800 64,600 105,000 14,500 4,300 8,000 724,000 112,000 12,000 3 Accounts Payable Accounts Receivable Accumulated Depr-Buildings Accumulated Depr-Equipment Buildings Cash Cost of Goods Sold Depreciation Expense Dividends Equipment Insurance Expense Interest Expense Interest Payable Interest Revenue £ 76,300 50,300 42,100 29,600 290,000 23,800 412,700 77,300 Inventory 50,300 Mortgage Payable 52,500 Prepaid Insurance 42,700Property Tax Expense 2 80,000 9,600 290,000 Property Taxes Payable 23,800 Retained Earnings 64,600 105,000 10,200 412,700 23,500 24,000 110,000 7,200 8,100 5,100 4,000 Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue Share Capital- Ordinary Utilities Expense 24,000 110,000 8,000 724,000 112,000 11,000 1 3,000 4,000