Big Box Store is located in midtown Madison. 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, 2020, the following accounts appeared in two of its trial balances.

Instructions

a. Prepare a multiple-step income statement, an owner’s equity statement, and a classified balance sheet. Notes payable are due in 2023.

b. Journalize the adjusting entries that were made.

c. Journalize the closing entries that are necessary.

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Unadjusted $ 25,200 30,500 Adjusted Unadjusted Adjusted $ 37,000 101,700 $ 25,200 30,500 45,000 26,000 518,000 6,500 Notes Payable Owner's Capital Owner's Drawings Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Salaries and Wages Expense $ 37,000 101,700 10,000 10,500 Accounts Payable Accounts Receivable Accumulated Depr.-Equip. 34,000 26,000 10,000 3,500 2,500 2,500 15,000 96,000 Cash Cost of Goods Sold Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense 518,000 6,500 146,000 146,000 11,000 7,000 6,400 15,000 96,000 720,000 11,000 4,500 8,000 8,500 Sales Revenue 720,000 6,500 Sales Commissions Expense Sales Commissions Payable 6,400 Interest Revenue 2,000 32,000 2,000 32,000 Inventory Sales Returns and Allowances 8,000 Utilities Expense 8,500