Second-Hand Almost New Department Store Inc. is located near a shopping mall. At the end of the company's fiscal year on December 31, 2017, 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; and $32,000 of the salaries and wages expense related to office salaries and the remainder related to sales salaries. Depreciation expense includes $10,400 relating to the building and $13,300 relating to equipment.
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.

Unadjusted 2 Accounts receivable Accumulated depreciation-building Accumulated depreciation-equipment Mortgage payable Salaries and wages expense Sales commission expense Sales commission payable Sales returns and allowances