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, 2014, the following accounts appeared in two of its trial balances.

Instructions
(a) Prepare a multiple-step income statement, an owner’s equity statement, and a classified balance sheet. Notes payable are due in 2017.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that arenecessary.

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Unadjusted Adjusted Unadjusted Adjusted 25,200 25,200 Notes Payable 30,500 30,500 Owner's Capital Accounts Payable Accounts Receivable Accumulated Depr--Equip. 34,000 45,000 Owner's Drawings Cash Cost of Goods Sold 37,000 37,000 101,700 101,700 10,000 10,000 3,500 2,500 2,500 15,000 96,000 700,000 700,000 6,500 1,000 4,500 29,000 29,000 Sales Returms and Allowances 8,000 8,000 8,500 3 26,000 26,000 Prepaid Insurance 10,500 507,000 507,000 Property Tax Expense 9 Property Taxes Payable Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue Inventory 6,500 146,000 146,000 Rent Expense 11,000 7,000 6,400 8,000 6,500 15,000 96,000 Salaries and Wages Expense Sales Revenue Sales Commissions Expense Sales Commissions Payable 2 6,400 8,000 Utilities Expense 8,500