2.Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the companys fiscal year on November 30, 2017, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted

Accounts Payable $ 25,200 $25,200

Notes Payable $37,000 $ 37,000

Accounts Receivable 30,500 30,500

Owners Capital 101,700 101,700

Accumulated Depr.Equip. 34,000 45,000

Owners Drawings 10,000 10,000

Cash 26,000 26,000

Prepaid Insurance 10,500 3,500

Cost of Goods Sold 518,000 518,000

Property Tax Expense 2,500

Freight-Out 6,500 6,500

Property Taxes Payable 2,500

Equipment 146,000 146,000

Rent Expense 15,000 15,000

Depreciation Expense 11,000

Salaries and Wages Expense 96,000 96,000

Insurance Expense 7,000

Sales Revenue 720,000 720,000

Interest Expense 6,400 6,400

Sales Commissions Expense 6,500 11,000

Interest Revenue 2,000 2,000

Sales Commissions Payable 4,500

Inventory 32,000 32,000

Sales Returns and Allowances 8,000 8,000

Utilities Expense 8,500 8,500

Instructions:

(a) Prepare a multiple-step income statement, an owners equity statement, and a classified balance sheet. Notes payable are due in 2020.

(b) Journalize the adjusting entries that were made.

(c) Journalize the closing entries that are necessary.