Lerwick Store Ltd. is located in midtown Metropolis. 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, 2017, the following accounts appeared in two of its trial balances.

Instructions
(a) Prepare an income statement, a retained earnings statement, and a classified statement of financial position. Notes payable are due in 2020.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.

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Unadjusted Adjusted Accounts Payable Accounts Receivable Accumulated Depr.-Equip Cash Cost of Goods Sold Depreciation Expense Dividends Equipment Freight-Out Insurance Expense Interest Expense Interest Revenue Inventory Unadjusted Adjusted E 37,000 4,500 3,200 3,200 15,000 61,700 96,000 13,500 7,000 9,000 706,000 45,000 8,500 25,200 30,500 22,000 21,000 507,000 25,200 Notes Payable 30,500 Prepaid Insurance 33,000Property Tax Expense 21,000 Property Taxes Payable 37,000 10,500 15,000 61,700 96,000 6,500 507,000 Rent Expense 11,000 8,000 154,300 6,500 6,000 6,100 8,000 Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue Share Capital-Ordinary 8,000 154,300 6,500 6,100 8,000 26,000 9,000 706,000 45,000 8,500 26,000 Utilities Expense