Second-Hand Almost New Department Store Inc. is located near the shopping mall. At the end of the company's fiscal year on December 31, 2014, the following accounts appeared in two of its trial balances:

Analysis reveals the following additional information:
1. Insurance expense and utilities expense are 60% selling and 40% administrative.
2. In the next year, $20,000 of the mortgage payable will be due for payment.
3. Property tax expense and depreciation on the building are administrative expenses; depreciation on the equipment is a selling expense; $3 2,000 of the salaries and wages expense related to office salaries and the remainder related to sales salaries.
Instructions
(a) Prepare a multiple-step income statement, statement of retained earnings, and classified balance sheet.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.

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Unadjusted $ 79,300 95,300 42,100 29,600 190,000 68,000 160,000 16,600 412,700 Adjusted Accounts payable Accounts receivable Accumulated depreciation-building Accumulated depreciation-equipment Building Cash Common shares Retained earnings Cost of goods sold Depreciation expense-building Depreciation expense-equipment Dividends Equipment Insurance expense Interest expense Interest payable Interest income Inventory Mortgage payable Prepaid insurance Property tax expense Property tax payable Salaries and wages expense Sales revenue Sales commission expense Sales commission payable Sales returns anc allowances Utilities expense $ 79,300 95,300 52,500 42,900 190,000 68,000 160,000 16,600 412,700 10,400 13,300 28,000 110,000 7,200 11,000 8,000 4,000 75,000 80,000 2,400 4,800 4,800 108,000 718,000 14,500 3,500 8,000 11,000 28,000 110,000 3,000 4,000 75,000 80,000 9,600 108,000 718,000 11,000 8,000 11,000