P3-4 Second-Hand Almost New Department Store Inc. is located near a shopping mall. At the end of the company's fiscal year on December 31, 2017, the following accounts appeared in two of its trial balances: Accounts payable Accounts receivable Accumulated depreciation building Accumulated depreciation equipment Buildings Cash Common shares Cost of goods sold Depreciation expense Dividends Equipment Insurance expense Interest expense Interest income Interest payable Inventory Mortgage payable Prepaid insurance Property tax expense Property tax payable Retained earnings Salaries and wages expense Sales commission expense Sales commission payable Sales returns and allowances Sales revenue Utilities expense Unadjusted $ 79,300 95,300 42,100 29,600 190,000 68,000 160,000 412,700 -0- 28,000 110,000 -0 3,000 4,000 -0 75,000 80,000 9,600 -O -0- 16,600 108,000 11,000 -0- 8,000 718,000 11,000 Adjusted $ 79,300 95,300 52,500 42,900 190,000 68,000 160,000 412,700 23,700 28,000 110,000 7,200 11,000 4,000 8,000 75,000 80,000 2,400 4,800 4,800 16,600 108,000 14,500 3,500 8,000 718,000 11,000 Analysis reveals the following additional information: 1. Insurance expense and utilities expense are 60% selling and 40% administrative. 2. In the next year, $20,000 of the mortgage payable will be due for payment. 3. Property tax expense and depreciation on the building are administrative expenses; depreciation on the equipment is a selling expense; and $32,000 of the salaries and wages expense related to office salaries and the remainder related to sales salaries. Depreciation expense includes $10,400 relating to the building and $13,300 relating to equipment. Instructions (a) Prepare a multiple-step income statement, statement of retained earnings, and classified balance sheet. (Hint: Use Illustrations 3A-2 to 3A-4 as models or look ahead Chapter 4 to see what a multiple-step income statement is.) (b) Journalize the adjusting entries that were made. (c) Journalize the closing entries that are necessary