Problem: Cider Department Store is located near the Village shopping mall. At the end of the company's year on December 31. 2002. the following accounts appeared in two of its trial balances.
Analysis reveals the following additional data.
1. Insurance expense and utilities expense are 60% selling and 40% administrative.
2. $20.000 of the mortgage payable is due for payment next year.
3. Depreciation on the building and property tax expense are administrative expenses; de-preciation on the equipment Is a selling expense.
Instructions:
(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.
(b) Journalize the adjusting entries that were made. Journalize the closing entries that are necessary.