First answer were incorrect. thanks for your help in advance.
Problem 5-03A al-a3, b-c The Deluxe 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 company's fiscal year on November 30, 2020, the following accounts appeared in two of its trial balances. Accounts Payable Accounts Receivable Accumulated Depr.--Equipment Cash Common Stock Cost of Goods Sold Dividends Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue Unadjusted $25,200 30,500 34,000 26,000 40,000 507,000 10,000 6,500 146,000 Adjusted $25,200 30,500 45,000 26,000 40,000 507,000 10,000 6,500 146,000 11,000 7,000 6,400 8,000 Inventory Notes payable Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue Utilities Expense Unadjusted Adjusted $29,000 $29,000 37,000 37,000 10,500 3,500 2,500 2,500 15,000 15,000 61,700 61,700 96,000 96,000 6,500 11,000 4,500 8,000 8,000 700,000 700,000 8,500 8,500 6,400 8,000 Prepare a multiple step income statement. (List other revenues before other expenses. If there is a net loss then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Deluxe Store Income Statement For the Year Ended November 30, 2020 T Total Revenues sales revenue 700000 Less sales returns and allowances 8000 Net Sales Tcost of goods sold 692000 507000 Gross Profit 185000 Operating Expenses freight-out 6500 depreciation expense 11000 7000 insurance expense property tax expense 2500 rent expense 15000 salaries and wages expense T 96000 sales commissions expense T 11000 ex .com utilities expense T 8500 T Total Operating Expenses 156600 income from Operations 28400 10.10. Other Revenues and Gains interest revenue T 8000 Other Expenses and Losses interest expense 6400 1600 Net Income / (Loss) 26800 Prepare a retained earnings statement. (List items that increase owner's equity first.) Deluxe Store Retained Earnings Statement For the Year Ended November 30, 2020 Retained Earnings, November 30, 2020 61700 Add Net Income / (Loss) 26800 88500 Less Dividends 10000 Retained Earnings, December 1, 2019 78500 Prepare a classified balance sheet. Notes payable are due in 2023. (List Current Assets in order of liquidity.) Deluxe Store Balance Sheet November 30, 2020 Assets Current Assets cash 26000 accounts receivable 30500 I inventory 29000 prepaid insurance 3500 T Total Current Assets 89000 Property, Plant and Equipment equipment T 146000 Less accumulated depreciation-equipment | T 45000 101000 Total Assets 190000 Liabilities and Stockholders' Equity Current Liabilities accounts payable 25200 property taxes payable 2500 sales commissions payable T 4500 1 Total Current Liabilities 32200 Long-term Liabilities notes payable 37000 1 Total Liabilities T 69200 Stockholders' Equity common stock T 40000 retained earnings 61700 Total Stockholders' Equity 101700 Total Liabilities and Stockholders' Equity 170900 Journalize the adjusting entries that were made. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov. 30 (To adjust depreciation on equipment) Nov. 30 (To adjust insurance expense) Nov. 30 (To adjust property tax expense) Nov. 30 (To adjust sales commissions expense) Journalize the closing entries that are necessary. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit x Nov. 30 (To close accounts with credit balances) Nov. 30 (To close accounts with debit balances) Nov. 30 T (To cose net income / (loss)) Nov. 30 (To close drawings)
