Prepare a multiple-step income statement a retained


Maine Department Store is located near the Village Shopping Mall. At the end of the company's calendar year on December 31, 2011, the following accounts appeared in two of its trial balances.


Unadjusted

Adjusted


Unadjusted

Adjusted

Accounts Payable

$ 79,300

$ 79,300

Interest Payable


$ 8,000

Accounts Receivable

50,300

50,300

Interest Revenue

$ 4,000

4,000

Accumulated Depr.-Building

42,100

52,500

Merchandise Inventory

75,000

75,000

Accumulated Depr.-Equipment

29,600

42,900

Mortgage Payable

80,000

80,000

Building

190,000

190,000

Office Salaries Expense

32,000

32,000

Cash

23,800

23,800

Prepaid Insurance

9,600

2,400

Common Stock

116,600

116,600

Property Tax Expense


4,800

Cost of Goods Sold

412,700

412,700

Property Taxes Payable


4,800

Depr. Expense-Building


10,400

Retained Earnings

60,000

60,000

Depr. Expense-Equipment


13,300

Sales Salaries Expense

76,000

76,000

Dividends

28,000

28,000

Sales

628,000

628,000

Equipment

110,000

110,000

Sales Commissions Expense

10,200

14,500

Insurance Expense


7,200

Sales Commissions Payable

60,000

4,300

Interest Expense

3,000

11,000

Sales Returns and Allowances

8,000

8,000




Utilities Expense

11,000

12,000




Utilities Expense Payable


1,000

Instructions

(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. $20,000 of the mortgage payable is due for payment next year.

(b) Journalize the adjusting entries that were made.

(c) Journalize the closing entries that are necessary.

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Financial Accounting: Prepare a multiple-step income statement a retained
Reference No:- TGS0773477

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