C/Users/ASUS/Downloads/Paul%20D.%20Kimmel %20Jerry%20J.%20Weygandt %20Donald %20E.%20Kieso %20-%20... Q aw V Tas Ask Copilot 5-48 CHAPTER 5 Accounting for Merchandise Operations Prepare financial statements and adjusting and closing entries. Accounts Payable Accounts Receivable Accumulated Depr.-Buildings Accumulated Depr.-Equipment Buildings Cash Cost of Goods Sold Depreciation Expense Dividends Equipment Insurance Expense Interest Expense Interest Payable Interest Revenue ... a. Net income 132,200 Retained earnings 172,800 Total assets 456,300 P5.3 (LO 4, 5) 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. Unadjusted 76,300 50.300 42,100 29,600 290,000 23,800 412,700 24,000 110,000 3,000 4,000 Adjusted 77,300 50,300 52,500 42,700 290,000 23,800 278 of 859 412,700 23.500 24.000 110,000 7,200 8,100 5,100 4,000 Inventory Mortgage Payable Prepaid Insurance Property Tax Expense Property Taxes Payable Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances: Sales Revenue Share Capital Ordinary Utilities Expense Unadjusted 75.000 80,000 9.600 64,600 105,000 10,200 8,000 724,000 112,000 11,000 Adjusted 75,000 80,000 2,400 4.800 4,800 64,600 105,000 14,500 4,300 8,000 724,000 112,000 12,000 Instructions a. Prepare an income statement, a retained earnings 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. 8