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 fi scal year on November 30, 2017, the following accounts appeared in two of its trial balances. Unadjusted Adjusted 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 & wages 96,000 96,000 Insurance Expense 7,000 Sales Revenue 720,000 720,000 Interest Expense 6,400 6,400 Sales Commissions Exp 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. (4+4+4) (b) Journalize the adjusting entries that were made. (3) B) how merchandising transactions are different in periodic and perpetual inventory system