Maine Department Store is located near the Village Shopping Mall. At the end of the company's fiscal year on December 31, 2012, the following accounts appeared in two of its trial balances. Unadjusted Adjusted / Unadjusted Adjusted Accounts Payable $79,300 / $79,300 Interest Payable NA / $8,000 Accounts Receivable 50,300 / 50,300 Interest Revenue $4,000 / 4,000 Accumulated Depr. - Building 42,100 / 52,500 Merchandise Inventory 75,000 / 75,000 Accumulated Depr. - Equipment 29,600 / 42,900 Mortgage Payable 80,000 / 80,000 Building 190,000 / 190,000 Office Salaries Expense 32,000 / 32,000 Cash 23,800 / 23,800 Prepaid Insurance 9,600 / 2,400 B. Maine, Capital 176,600 / 176,600 Property Tax Expense NA / 4,800 Cost of Goods Sold 412,700 / 412,700 Property Taxes Payable NA / 4,800 Depr. Expense - Building NA / 10,400 Sales Salaries Expense 76,000 / 76,000 Depr. Expense- Equipment NA / 13,300 Sales 628,000 / 628,000 B. Maine, Drawing 28,000 / 28,000 Sales Commissions Expense 10,200 / 14,500 Equipment 110,000 / 110,000 Sales Commissions Payable NA / 4,300 Insurance Expense NA / 7,200 Sales Returns and Allowances 8,000 / 8,000 Interest Expense 3,000 / 11,000 Utilities Expense 11,000 / 12,000 Utilities Expense Payable NA / 1,000 Prepare a multiple-step income statement, an owner's equity statement, and a classified balance sheet. $20,000 of the mortgage payable is due for payment next year. (List amounts from largest to smallest e.g. 10, 5, 3, 2. If amounts are the same, list alphabetically. For the Balance Sheet, list assets in order of liquidity and liabilities from largest to smallest e.g. 10, 5, 3, 2.) MAINE DEPARTMENT STORE What I have so far... please let me know what I have right/wrong. Also need help on blanks. (___ = no answer / not sure what to put) *Numbers I filled in A) Income Statement For the Year Ended December 31, 2012 Sales Revenues ______ (I put SALES here) $ 628,000 * Less: _____ (I put SALES RETURN AND ALLOWANCES) $ 8,000 * Net sales _____ $ 620,000 * _____ (I put COST OF GOODS SOLD) $ 412,700 * Gross profit $ 207,300 * Operating expenses (What I put) Sales salaries expense $76,000 * Office salaries expense $32,000 * Sales comm. expense $14,500 * Depr. expenses - Equipment $13,300 * Utilities expense $12,000 * Depr. expense - Building $10,400 * Insurance expense $7,200 * Property tax expense $4,800 * _________ Total operating expenses 170,200 * Income from operations 37,100 * Other revenues and gains _____ (I put INTEREST REVENUE) 4,000 * Other expenses and losses _____ (I put INTEREST EXPENSES) 11,000 * Net income $ ______ ( I put $30,100) B) MAINE DEPARTMENT STORE Owner's Equity Statement For the Year Ended December 31, 2012 _____ (I put B. MAINE, CAPITAL, JAN. 1) $ 176,600 * Add: ____ (I put INVESTMENTS) $ _____ Less: _____ (I put DRAWINGS) $ 28,000 * _______ (I put B. MAINE, CAPITAL, DEC. 31) C) MAINE DEPARTMENT STORE Balance Sheet December 31, 2012 Current Assets ____ (I put CASH) $23,800 * ____ (I put ACCOUNTS RECEIVABLE) $50,300 * ____ ?? ____ ?? Total current assets Property, plant and equipment _____ (I put BUILDINGS) $ ____ Less: ____ (I put Acc. Dep. - BUILDING) $ ____ Equipment $ ______ Less: ____ (I put Acc. Dep. - EQUIPMENT) $ _____ Total assets $ _______ Liabilities and Owner's Equity Current liabilities ____ (MORTGAGE PAYABLE) $ 80,000 * ____ (ACCOUNTS PAYABLE) $ 79,300 * ____ (INTEREST PAYABLE) $8,000 * ____ (PROPERTY TAX PAYABLE) $ 4,800 * ____ (SALES COMM. PAYABLE) $ 4,300 * ____ (UTILITIES EXPENSE PAYABLE) $ 1,000 * Total current liabilities $ _____ Long-term liabilities _____ (MORTGAGE PAYABLE) $ _____ Total liabilities $ _____ Owner's Equity ______ (B. MAINE, CAPITAL) $ _____ Total liabilities and owner's equity $ ______ D) Journalize the adjusting entries that were made. Date Description/Account - Debit / Credit Dec. 31 (To adjust depreciation on building.) Dec. 31 (To adjust depreciation on equipment.) Dec. 31 (To adjust insurance expense.) Dec. 31 (To adjust interest expense.) Dec. 31 (To adjust property tax expense.) Dec. 31 (To adjust sales commissions expense.) Dec. 31 (To adjust utilities expense.) Journalize the closing entries that are necessary. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.) Date Description/Account - Debit / Credit Dec. 31 ____ (COST OF GOODS) ____ (INTEREST REVENUE) ____ (INCOME SUMMARY) (To close revenue account.) Dec. 31 ____ (INCOME SUMMARY) (then there is 11 slots to fill in from largest to smallest amount) (To close expense accounts.) Dec. 31 ____ (INCOME SUMMARY) ____ (B. MAINE, CAPITAL) (To close net income to capital.) Dec. 31 ____ (B. MAINE, CAPITAL) ____ (B. MAINE, DRAWING) (To close drawings to capital.)