The Spooky Store is located in midtown Salem. During the past several years, net income has been declining because of suburban shopping centers. At the end of the companys fiscal year on October 31, 2019, the following accounts appeared on the unadjusted trial balance. Adjusting entries were entered into the worksheet but not into the adjusted trial balance.

Instructions

(a) Complete the worksheet for Spooky Store. Prepare the adjusted trial balance and extend accounts to the income statement and balance sheet columns.

(b) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.

(c) Journalize the closing entries that are necessary.

Spooky Stores Worksheet For the Month Ended October 31, 2019 Account Titles Cash 98,000 23,000 29,000 10,000 157,000 Accounts Receivable Invent Prepaid Insurance 7000 Accumulated D Accounts Payable 74,000 14000 66,000 30,000 78,000 604,000 12000 Notes Payable (due in 2021) Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Cost of Goods Sold 23,000 20,000 423,000 84,000 7,000 ense Sales Commissions Expense Depreciation Expense Insurance Expense Rent Expense 12000 14000 7000 14,000 4,000 Utilities Expense Totals Net Income 892,000892,000 33000 33000 Spooky Store Income Statement For the Year Ended October 31, 2019 Sales: Net Sales Gross Profit Operating Expenses: Total Operating Expenses Spooky Store Balance Sheet October 31, 2019 Assets Current Assets: Total Current Assets Property, Plant and Equipment: Total Assets Liabilities and Stockholder's Equity Current Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders'Equity: Total Stockholders' Equity Total Liabilities and Stockholders' Equity Closing Entries Accounts Debit Credit 1. 2. 3. 4