Starz Department Store is located near the Towne Shopping Mall. At the end of the companys calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.

Unadjusted	Adjusted	Unadjusted	Adjusted
Accounts Payable	$79,400	$83,512	Interest Revenue	4,160	4,160
Accounts Receivable	52,312	52,312	Inventory	78,000	78,000
Accumulated Depr.Buildings	43,784	54,600	Mortgage Payable	83,200	83,200
Accumulated Depr.Equipment	30,784	44,616	Prepaid Insurance	9,984	2,496
Buildings	301,600	301,600	Property Tax Expense	4,992
Cash	24,752	24,752	Property Taxes Payable	4,992
Common Stock	116,480	116,480	Retained Earnings	67,184	67,184
Cost of Goods Sold	429,208	429,208	Salaries and Wages Expense	112,320	112,320
Depreciation Expense	24,648	Sales Revenue	752,960	752,960
Dividends	24,960	24,960	Sales Commissions Expense	10,608	15,080
Equipment	114,400	114,400	Sales Commissions Payable	4,472
Insurance Expense	7,488	Sales Returns and Allowances	8,320	8,320
Interest Expense	3,120	8,944	Utilities Expense	11,440	12,480
Interest Payable	5,824

Warning

Don't show me this message again for the assignment

Ok Cancel

Prepare a multiple-step income statement. (List other revenues before other expenses.)

STARZ DEPARTMENT STORE Income Statement For the Year Ended December 31, 2014
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
	$
AddLess:
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
	$
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses
DividendsExpensesNet Income / (Loss)Retained Earnings , December 1, 2012Retained Earnings , December 31, 2012Sales RevenueTotal ExpensesTotal RevenuesNet SalesGross ProfitOperating ExpensesTotal Operating ExpensesIncome from OperationsOther Revenues and GainsOther Expenses and Losses	$

Warning

Don't show me this message again for the assignment

Ok Cancel

Show List of Accounts

Link to Text Link to Text

Prepare retained earnings statement. (List items that will increase retained earnings first.)

STARZ DEPARTMENT STORE Retained Earnings Statement For the Year Ended December 31, 2014
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenueTotal ExpensesTotal RevenuesNet Income	$
AddLess: DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenueTotal ExpensesTotal RevenuesNet Income
AddLess: DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenueTotal ExpensesTotal RevenuesNet Income
DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenueTotal ExpensesTotal RevenuesNet Income	$

Warning

Don't show me this message again for the assignment

Ok Cancel

Show List of Accounts

Link to Text Link to Text

Prepare a classified balance sheet. $16,640of the mortgage payable is due for payment next year. (List current assets in order of liquidity. Property, plant and equipment list in order of land, buildings and equipment.)

STARZ DEPARTMENT STORE Balance Sheet December 31, 2014
Assets
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
	$
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity		$
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
	$
AddLess:
LessAdd:
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity			$
Liabilities and Stockholder's Equity
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
	$
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity		$
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity
Current AssetsCurrent LiabilitiesExpensesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesNet Income / (Loss)Property, Plant and EquipmentRevenuesStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal ExpensesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal RevenuesTotal Stockholders' EquityOwner's Equity	$

Warning

Don't show me this message again for the assignment

Ok Cancel

Show List of Accounts

Link to Text Link to Text

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
Dec. 31
(To adjust depreciation on building and 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
(To close accounts with credit balances.)
2.
(To close accounts with debit balances.)
3.
(To close net income / (loss).)
4.
(To close dividends.)