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.

	Unadjusted	Adjusted
Accounts Payable	$25,200	$25,200
Accounts Receivable	30,500	30,500
Accumulated Depr.Equip.	34,000	45,000
Cash	26,000	26,000
Common Stock	40,000	40,000
Cost of Goods Sold	507,000	507,000
Dividends	10,000	10,000
Freight-Out	6,500	6,500
Equipment	146,000	146,000
Depreciation Expense		11,000
Insurance Expense		7,000
Interest Expense	6,400	6,400
Interest Revenue	8,000	8,000
Inventory	$29,000	$29,000
Notes Payable	37,000	37,000
Prepaid Insurance	10,500	3,500
Property Tax Expense		2,500
Property Taxes Payable		2,500
Rent Expense	15,000	15,000
Retained Earnings	61,700	61,700
Salaries and Wages Expense	96,000	96,000
Sales Commissions Expense	6,500	11,000
Sales Commissions Payable		4,500
Sales Returns and Allowances	8,000	8,000
Sales Revenue	700,000	700,000
Utilities Expense	8,500	8,500

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

(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