The Moulton Store is located in midtown Metropolis. 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, 2014, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted Accounts Payable § D5 20O $ 25,200 Notes Payable Accounts Receivable 30,500 30,500 Prepaid Insurance Accumulated Depr.—Equip. 22,000 33,000 Property Tax Expense Cash 26,000 26,000 Property Taxes Payable Common Stock 50,000 50,000 Rent Expense Cost of Goods Sold 507,000 507,000 Retained Earnings Depreciation Expense 11,000 Salaries and Wages Expense Dividends 8,000 8,000 Sales Commissions Expense Equipment 154,300 154,300 Sales Commissions Payable Freight-Out 6,500 6,500 Sales Returns and Allowances Insurance Expense 7,000 Sales Revenue Interest Expense 6,100 6,100 Utilities Expense Interest Revenue 8,000 8,000 Inventory 26,000 26,000 Instructions

(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. Notes payable are due in 2017.

(b) Journalize the adjusting entries that were made.

(c) Journalize the closing entries that are necessary.