Starz Department Store is located near the Towne Shopping Mall. At the end of the company’s calendar year on December 31, 2020, the following accounts appeared in two of its trial balances.

Instructions
a. Prepare an income statement, an owner’s equity 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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Adjusted Adjusted Unadjusted Unadjusted Accounts Payable Accounts Receivable Accumulated Depr.-Buildings Accumulated Depr.-Equipment Buildings £ 76,300 £ 77,300 Inventory Mortgage Payable Owner's Capital Owner's Drawings £ 75,000 80,000 176,600 £ 75,000 80,000 176,600 50,300 50,300 42,100 52,500 29,600 42,700 24,000 24,000 Prepaid Insurance Property Tax Expense Property Taxes Payable Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue 290,000 290,000 9,600 2,400 23,800 412,700 Cash Cost of Goods Sold Depreciation Expense Equipment 23,800 4,800 4,800 412,700 105,000 23,500 110,000 7,200 105,000 14,500 4,300 110,000 10,200 Insurance Expense Interest Expense Interest Payable Interest Revenue 3,000 8,000 724,000 8,100 8,000 5,100 724,000 Utilities Expense 4,000 4,000 11,000 12,000