Tarp Department Store is located in midtown Platteville. 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, 2011, the following accounts appeared in two of its trial balances.

Instructions
(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. Notes payable are due in 2014.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that arenecessary.

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Unadjusted Adjusted Unadiusted Adjusted Accounts Payable Accounts Receivable Accumulated Depr-Delivery Equip. 10,000 5.000 Prepaid Insurance Accumulated Depr Store Equip.24,000 32.000 Property Tax Expense Cash S 29,000 29,000 37,000 3.500 25,200 25,200 Merchandise Inventory 30500 30.500 Notes Payable 37,000 10,500 6,000 6,000 Property Taxes Payable 50,000 50,000 Rent Expense 507,000 507,000 Retained Earnings 6500 6.500 Salaries Expense 46,000 46,000 Sales 2,800 15,000 51,700 96,000 680,000 680,000 5,000 Sales Commissions Expense 6,500 11,200 4,700 8,000 100000 100,000 15,000 51.700 96,000 Delivery Expense Delivery Equipment Depr. Expense-Delivery Equip. Depr. Expense Store Equip. Dividends 8,000 Sales Commissions Payable Sales Returns and Allowances 10,000 10,000 8,000 7,000 Store Equip. Interest Expense Interest Revenue 6.400 6,400 Utities Expense 8,000