• Lerwick Store Ltd. 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, 2017, the following accounts appeared in two of its trial balances. Unadjusted Adjusted £ 37,000 10,500 15,000 Accounts Payable Accounts Receivable Accumulated Dept.--Equip. Cash Cost of Goods Sold Depreciation Expense Dividends Equipment Freight-Out Insurance Expense Interest Expense Interest Revenue Inventory Unadjusted Adjusted £ 25,200 30,500 £ 25,200 Notes Payable 30,500 Prepaid Insurance 22,000 33,000 Property Tax Expense 21,000 507,000 21,000 Property Taxes Payable 507,000 Rent Expense 11,000 Retained Earnings 8,000 8,000 Salaries and Wages Expense 154,300 154,300 Sales Commissions Expense 6,500 6,500 Sales Commissions Payable 6,000 Sales Returns and Allowances 6,100 6,100 Sales Revenue 8,000 8,000 Share Capital-Ordinary 26,000 26,000 Utilities Expense 61,700 96,000 6,500 £ 37,000 4,500 3,200 3,200 15,000 61,700 96,000 13,500 7,000 9,000 706,000 45,000 8,500 9,000 706,000 45,000 8,500 Instructions (a) Prepare an income statement, a retained earnings statement, and a classified state- (a) Net income £32,200 Retained earnings ment of financial position. Notes payable are due in 2020. (b) Journalize the adjusting entries that were made. £85,900 (c) Journalize the closing entries that are necessary. Total assets £203,300