The Larkspur, Inc. 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 companys fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. All accounts balances are normal.

		Unadjusted		Adjusted				Unadjusted		Adjusted
Accounts Payable		$25,700		$25,700		Inventory		$29,000		$29,000
Accounts Receivable		30,700		30,700		Notes payable		37,000		37,000
Accumulated Depr.Equipment		36,500		45,500		Prepaid Insurance		10,000		2,500
Cash		27,000		27,000		Property Tax Expense				2,500
Common Stock		28,500		28,500		Property Taxes Payable				2,500
Cost of Goods Sold		512,000		512,000		Rent Expense		18,000		18,000
Dividends		10,500		10,500		Retained Earnings		61,700		61,700
Freight-Out		5,000		5,000		Salaries and Wages Expense		93,100		93,100
Equipment		145,500		145,500		Sales Commissions Expense		6,500		11,000
Depreciation Expense				9,000		Sales Commissions Payable				4,500
Insurance Expense				7,500		Sales Returns and Allowances		7,100		7,100
Interest Expense		6,500		6,500		Sales Revenue		710,000		710,000
Interest Revenue		9,500		9,500		Utilities Expense		8,000		8,000

(a1) Prepare a multiple-step income statement. (List other revenues before other expenses. If there is a net loss then enter the amount using either a negative sign preceding the (number e.g. -45 or parentheses e.g. (45).)

(a2) Prepare a retained earnings statement. (List items that increase retained earnings first.)

(a3) Prepare a balance sheet. Notes payable are due in 2025. (List Current Assets in order of liquidity.)

(b) Journalize the adjusting entries that were made. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c) Journalize the closing entries that are necessary. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)