P5.13A (LO 7) AP The following is an alphabetical list of Buds Bakerys adjusted account balances at the end of the companys fiscal year on November 30, 2024:

Accounts payable $32,310 Merchandise inventory $34,360

Accounts receivable 13,770 Mortgage payable 106,000

Accumulated depreciationbuilding 61,200 Prepaid insurance 4,500

Accumulated depreciationequipment 19,880 Property tax expense 3,500

B. Hachey, capital 104,480 Purchase discounts 6,300

B. Hachey, drawings 12,000 Purchase returns and allowances 13,315

Building 175,000 Purchases 634,700

Cash 8,500 Rent revenue 2,800

Delivery expense 8,200 Salaries expense 122,000

Depreciation expense 14,000 Salaries payable 8,500

Equipment 57,000 Sales 872,000

Freight in 5,060 Sales discounts 8,250

Insurance expense 9,000 Sales returns and allowances 9,845

Interest expense 5,300 Unearned revenue 3,000

Land 85,000 Utilities expense 19,800

Additional facts:

Buds Bakery uses a periodic inventory system with the earnings approach. Of the mortgage payable, $8,500 is due on March 31, 2025. A physical count determined that merchandise inventory on hand at November 30, 2024, was $37,350. The owner made no capital contributions during the year.

Instructions

Prepare a multiple-step income statement, statement of owners equity, and classified balance sheet for the November 30, 2024, year end. Prepare the closing journal entries. Post the closing entries to the Merchandise Inventory and capital accounts. Check that the balances in these accounts are the same as the amounts on the balance sheet.