The Deluxe Store is located in midtown Madison. 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, 2015, the following accounts appeared in two of its trial balances.

A. Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. Notes payable are due in 2018. (Check Figures: Net Income $29,100 Retained Earnings $80,800 Total Assets $190,000)

B. Journalize the adjusting entries that were made.

C. Journalize the closing entries that are necessary.

(a)
The Deluxe Store
Income Statement
For the Year Ended November 30, 2015
The Deluxe Store
Retained Earnings Statement
For the Year Ended November 30, 2015

(a) (Continued)
The Deluxe Store
Balance Sheet
November 30, 2015
Assets
Liabilities and Stockholders' Equity

(b)	General Journal
Date	Account Titles					Debit	Credit
	Adjusting Entries
Nov. 30
30
30
30
(c)	General Journal
Date	Account Titles					Debit	Credit
	Closing Entries
Nov. 30
30
30
30

Unadjusted Adjusted Accounts Payable $25,200 $25,200 30,500 30,500 Accounts Receivable Accumulated Depr Equip. 34,000 45,000 Cash 26,000 26,000 40,000 40,000 Common Stock 507,000 507,000 Cost of Goods Sold Dividends 10,000 10,000 146,000 146.000 Equipment 11,000 Depreciation Expense Insurance Expense 7000 6,400 6400 Interest Expense Interest Revenue Inventory $29,000 $29,000 37,000 37,000 Notes Payable 10.500 3,500 Prepaid Insurance Property Tax Expense 2,500 Property Taxes Payable 2,500 15.000 15,000 Rent Expense 61,700 61,700 Retained Earnings Salaries and Wages Expense 90,000 96,000 6,500 11,000 Sales Commissions Expense 4,500 Sales Commissions Payable 8,000 Sales Returns and Allowances 8,000 700,000 700,000 Sales Revenue 8,500 8,500 Utilities Expense