Starz Department Store is located near the Towne Shopping Mall. At the end of the company’s calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted Accounts Payable $ 79,300 $ 80,300 Interest Revenue Accounts Receivable 50,300 50,300 Inventory Accumulated Depr—Buildings 42,100 52,500 Mortgage Payable Accumulated Depr—Equipment 29,600 42,900 Prepaid Insurance Buildings 290,000 290,000 Property Tax Expense Cash 23,800 23,800 Property Taxes Payable Common Stock 112,000 112,000 Retained Earnings Cost of Goods Soid 412,700 412,700 Salaries and Wages Expense Depreciation Expense 23,700 Sales Commissions Expense Dividends 24,000 24,000 Sales Commissions Payable Equipment 110,000 110,000 Sales Returns and Allowances Insurance Expense 7,200 Sales Revenue Interest Expense 3,000 8,600 Utilities Expense Interest Payable 5,600 Instructions

(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. $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.