Starz Department Store is located near the Towne Shopping Mall. At the end of the company€™s calendar year on December 31, 2014, 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. $16,000 of the mortgage payable is due for payment next year.

(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.

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Unadjusted $ 79,300 Adjusted $ 80,300 Unadjusted Adjusted $ 75,000 $ 75,000 Accounts Payable Accounts Receivable Accumulated Depr.-Buildings Accumulated Depr.-Equipment Buildings Inventory Mortgage Payable Prepaid Insurance Property Tax Expense Property Taxes Payable Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Sales Revenue 50,300 42,100 29,600 290,000 23,800 412,700 80,000 50,300 52,500 42,900 290,000 23,800 412,700 23,700 24,000 80,000 9,600 2,400 4,800 4,800 64,600 108,000 14,500 4,300 8,000 724,000 112,000 12,000 Cash 64,600 108,000 10,200 Cost of Goods Sold Depreciation Expense Dividends 24,000 110,000 Equipment 8,000 110,000 7,200 8,600 5,600 4,000 Insurance Expense Interest Expense Interest Payable Interest Revenue 724,000 112,000 11,000 Share Capital-Ordinary Utilities Expense 3,000 4,000